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 12/1/2017 | 22,000 units |
Direct materials (100% complete)
Conversion costs (70% complete)
| Started during December | 76,200 units |
| Completed and transferred out 12/31/2017 | 72,700 units |
| WIP, ending inventory 12/31/2017 | 18,700 units |
Direct materials (100% complete)
Conversion costs (60% complete)
Costs for December:
WIP, beginning Inventory:
| Direct materials added | 224,400 |
| Conversion costs added | 294,000 |
Normal spoilage totals ________.
◦ 3180 units
◦ 6800 units
◦ 2908 units
◦ 3892 units
Small Feline
concept map template
Post-transcriptional processing.
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