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Author Question: Outose Concept manufactures small tables in its Processing Department. Direct materials are added at ... (Read 66 times)

sdfghj

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Outose Concept manufactures small tables in its Processing Department. Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some units are spoiled due to undetectable materials defects. Spoiled units generally constitute 4% of the good units. Data for December 2017 are as follows:

WIP, beginning inventory 12/1/201722,000 units
 Direct materials (100% complete)
 Conversion costs (70% complete)
Started during December76,200 units
Completed and transferred out 12/31/201772,700 units
WIP, ending inventory 12/31/201718,700 units
 Direct materials (100% complete)
 Conversion costs (60% complete)

Costs for December:
 WIP, beginning Inventory:
Direct materials$153,000
Conversion costs77,100
Direct materials added224,400
Conversion costs added294,000

Normal spoilage totals ________.
◦ 3180 units
◦ 6800 units
◦ 2908 units
◦ 3892 units


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Marked as best answer by sdfghj on Mar 6, 2021

Sarahjh

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sdfghj

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Reply 2 on: Mar 6, 2021
Excellent


LegendaryAnswers

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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