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Author Question: Outose Concept manufactures small tables in its Processing Department. Direct materials are added at ... (Read 42 times)

cmoore54

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

WIP, beginning inventory 12/1/201722,300 units
 Direct materials (100% complete)
 Conversion costs (70% complete)
Started during December76,400 units
Completed and transferred out 12/31/201772,900 units
WIP, ending inventory 12/31/201719,000 units
 Direct materials (100% complete)
 Conversion costs (60% complete)

Costs for December:
 WIP, beginning Inventory:
Direct materials$156,000
Conversion costs77,200
Direct materials added224,400
Conversion costs added299,000

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


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Marked as best answer by cmoore54 on Mar 6, 2021

meow1234

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cmoore54

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Reply 2 on: Mar 6, 2021
Gracias!


fatboyy09

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Reply 3 on: Yesterday
Excellent

 

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