Question: QUESTION 5 Outose Concept manufactures small tables in its Processing Department. Direct materials are added at the initiation of the production cycle and must be


QUESTION 5 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 nondetectible materials defects. Inspection occurs when units are 50% converted. Spoiled units generally constitute 3% of the good units. Data for December 2015 are as follows: 22,900 units WIP, beginning inventory 12/1/2015 Direct materials (100% complete) Conversion costs (80% complete) Started during December Completed and transferred out 12/31/2015 WIP, ending inventory 12/31/2015 Direct materials (100% complete) Conversion costs (60% complete) 76,900 units 72,700 units 18,600 units Costs for December: WIP, beginning Inventory Direct materials Conversion costs Direct materials added Conversion costs added $153,000 76,900 226,400 296,000 What is the number of total spoiled units? O 6319 units O 2181 units 8500 units O 10,880 units QUESTION 6 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 nondetectible materials defects. Inspection occurs when units are 50% converted. Spoiled units generally constitute 5% of the good units. Data for December 2015 are as follows: 23,000 units WIP, beginning inventory 12/1/2015 Direct materials (100% complete) Conversion costs (45% complete) Started during December Completed and transferred out 12/31/2015 WIP, ending inventory 12/31/2015 Direct materials (100% complete) Conversion costs (40% complete) 76,500 units 72100 units 19,000 units Costs for December: WIP, beginning Inventory: Direct materials Conversion costs Direct materials added Conversion costs added $153,000 77,100 223,400 294,000 Abnormal spoilage totals 0 4025 units 8400 units 3605 units 4845 units
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