Oehkle Inc. produces paint in a process in which spoilage occurs continually. Spoilage of 2 percent or fewer of the gallons of raw material placed into production is considered normal. The following operating statistics are available for June 2010:
Beginning WIP Inventory (60% complete as to material;
70% complete as to conversion) .............................. 16,000 gallons
Started during June ............................................360,000 gallons
Ending WIP Inventory (40% complete as to material;
20% complete as to conversion) ............................... 8,000 gallons
Spoiled ............................................................. 2,800 gallons
a. How many gallons were transferred out?
b. What are the FIFO equivalent units of production for material? For conversion?