Detailed Answer
(a) The requirement is to determine the proper allocation
of normal defective unit costs to the ending work in process.
Normal defective unit costs are spread over the units of good
output because the attaining of good units necessitates the appearance
of normal spoiled units. The cost of the normal defective
units is included in the total costs of the good equivalent
units of output. Ending inventory comprised one-half of the total
units of good output produced during the year; therefore, it will
bear 50% of the normal defective unit costs incurred during the
year.