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

Transferred Out

110,000

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