The Podolsky Corporation manufactures a single chair, which is processed in five departments. The following data are available for Department Four for the month of December: Units schedule: Beginning Inventory Transferred in Ending inventory Layer 1 Layer 2 Normal spoilage: Abnormal spoilage 30 units (1/3 complete) 50 units 20 units (1/4 complete) 8 units (3/4 complete) 10 units 2 units In producing the chair, Material X is added at the 10% point, and Material Y is added at the 80% point. Inspection for spoilage occurs at the 50% point. Cost Schedule: Transferred in Material X Material Y Direct Labor Beginning Inventory $120 $90 0 $60 Current costs 500 150 160 235 Applied overhead is used, and it is applied at 200% of direct labor cost. The actual overhead for December was $500. The company use FIFO.