The Warner Company produces expensive sunglassess and uses a process-costing system (Weighted Avg Method).Direct materials are added at the beginning of the process.Conversion costs are added evenly throughout the process (Ending WIP = 75% complete).Consider the following data:

Units D.M ($) Conv ($)

WIP(Beg) 20,000 $550,000 $130,000

Spoiled Units ???

Goods Completed and 110,000

Transferred Out

Started in Month 120,000

WIP (End) 10,000

Costs Added in Month $4,200,000 $ 2,600,000

Normal Spoilage: 15% of Good Units Transferred; Inspection occurs when product is completed

REQUIRED:

1. Determine the # normal and abnormal spoilage (physical units) produced in period
2. Compute the equivalent # of units for the current period
3. Calculate costs per Equivalent Unit