Question

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. Inspection occurs when units are completed. Spoiled units generally constitute 3% of the good units. Data for December 2017 are as follows: WIP, beginning inventory 12/1/2017 17,600 units Direct materials (100% complete) Conversion costs (20% complete) Started during December 60,900 units Completed and transferred out 12/31/2017 58,200 units WIP, ending inventory 12/31/2017 18,000 units Direct materials (100% complete) Conversion costs (80% complete) Costs for December: WIP, beginning Inventory: Direct materials $183,600 Conversion costs 92,500 Direct materials added 269,280 Conversion costs added 352,800 Abnormal spoilage totals ________.

Answer 1

554 units

Step-by-step explanation:

Calculation to determine the Abnormal spoilage totals

Abnormal spoilage totals=[(17,600+ 60,900) - ( 58,200+18,000)]-3% x 58,200

Abnormal spoilage totals=[(78,500-76,200)-1,746]

Abnormal spoilage totals=2,300-1,746

Abnormal spoilage totals= 554 units

Therefore the Abnormal spoilage totals is 554 units