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

cmoore54 · **on:** Mar 6, 2021

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 5% of the good units. Data for December 2017 are as follows:

WIP, beginning inventory 12/1/2017

22,300 units

Direct materials (100% complete)
Conversion costs (70% complete)

Started during December

76,400 units

Completed and transferred out 12/31/2017

72,900 units

WIP, ending inventory 12/31/2017

19,000 units

Direct materials (100% complete)
Conversion costs (60% complete)

Costs for December:
WIP, beginning Inventory:

Direct materials

$156,000

Conversion costs

77,200

Direct materials added

224,400

Conversion costs added

299,000

What cost is allocated to abnormal spoilage using the weighted-average process-costing method? (Round any cost per unit calculations to the nearest cent.)
◦ $ 0
◦ $28,150
◦ $25,177
◦ $77,200

meow1234 · **Reply #1 on:** Mar 6, 2021

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