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 non- detectible materials defects. Inspection occurs when units are 50% converted. Spoiled units generally constitute 4% of the good units. Data for December 2015 are as follows: 22,000 units WIP, beginning inventory 12/1/2015 Direct materials (100% complete) Conversion costs (75% complete) Started during December Completed and transferred out 12/31/2015 WIP, ending inventory 12/31/2015 Direct materials (100% complete) Conversion costs (65% complete) Costs for December: WIP, beginning Inventory: Direct materials 76,000 units Conversion costs Direct materials added Conversion costs added What is the number of total spoiled units? Select one: a. 8,000 units b. 2,880 units c. 5,120 units d. 10,200 units $ 150,000 72,000 units 18,000 units 76,800 222,400 290,000
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 non- detectible materials defects. Inspection occurs when units are 50% converted. Spoiled units generally constitute 4% of the good units. Data for December 2015 are as follows: 22,000 units WIP, beginning inventory 12/1/2015 Direct materials (100% complete) Conversion costs (75% complete) Started during December Completed and transferred out 12/31/2015 WIP, ending inventory 12/31/2015 Direct materials (100% complete) Conversion costs (65% complete) Costs for December: WIP, beginning Inventory: Direct materials 76,000 units Conversion costs Direct materials added Conversion costs added What is the number of total spoiled units? Select one: a. 8,000 units b. 2,880 units c. 5,120 units d. 10,200 units $ 150,000 72,000 units 18,000 units 76,800 222,400 290,000
Chapter5: Process Costing
Section: Chapter Questions
Problem 3PA: Pant Risers manufactures bands for self-dressing assistive devices for mobility-impaired...
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