SPOILED UNITS: ALLOCATION OF COSTS The N. H. Jones Manufacturing Company produces china figurines. The Molding Depart. ment inspects for spoiled units when units are 65% complete. Direct materials are added at the beginning of the process, and direct labor and factory overhead are incurred evenly throughout the process. May's data for the department are as follows: 3,390 $6,271.50 12,150 $20,290.50 11,000 3,040 Beginning units in process (100% direct materials, conversion costs) Cost of beginning work-in-process inventory Units transferred in during the period ... Costs transferred in during the period Units transferred out...... Ending units in process (100% direct materials, 60% conversion costs) Spoiled units: Normal.... Abnormal Costs added during the period: Direct materials..... Direct labor Factory overhead (applied) 800 700 $10,449.00 $3,420.63 $2,407.11 Additional information: Fifo costing is used to account for beginning work-in-process inventory. The company's policy is to treat the cost of spoiled units in production as a separate element of cost in the department in which the spoilage occurs. Required: Determine the total cost of the spoiled units. b Allocate the total spoiled unit cost to normal and abnormal spoilage