Rose Flour Company makes fl our from high-protein lentils. It uses a process costing system. In the monthof January, the company started 11,350 units and completed and transferred out 8,000 units. The inspection process occurs at the 60% point and the process results in normal spoilage of 13.5% of the good units passed. There were no beginning inventories in January. January’s ending inventories were 75% complete with respect to labour and overhead and 100% complete with respect to materials. There was no abnormal spoilage during January. The company incurred $20,620 in conversion costs and $22,700 indirect materials cost during January.

REQUIRED

A. What is the number of spoiled units?
B. What will be the cost per equivalent unit for labour and overhead costs?