Business, 06.05.2020 06:24 itzyoboyCj

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?

A) $ 0
B) $28,150
C) $25,177
D) $77,200

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Outose Concept manufactures small tables in its Processing Department. Direct materials are added at...

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