Question

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 2020 are as​ follows: ​WIP, beginning inventory​ 12/1/2020 ​23,000 units Direct materials​ (100% complete) Conversion costs​ (75% compete) Started during December ​76,900 units Completed and transferred out​ 12/31/2020 ​72,700 units ​WIP, ending inventory​ 12/31/2020 ​18,800 units Direct materials​ (100% complete) Conversion costs​ (70% complete) Costs for​ December: ​ WIP, beginning​ inventory: Direct materials ​$160,000 Conversion costs ​77,300 Direct materials added ​224,400 Conversion costs added ​293,000 Abnormal spoilage totals​ ________.

Answer 1

The answer is "5492".

Step-by-step explanation:

`\to (23,000+76,900) - (72,700+18,800) \\\\\to (99,900) - (91,500) \\\\\to 8,400\\\\\to 4\% * 72,700`

`= 2,908\\\\`

`\to 8,400 - 2,908 \\\\`

`=5492`