Miramar, Inc

question 101

Multiple Choice

Miramar, Inc. uses a weighted-average process costing system which recognizes normal spoilage as 5% of good output. During the current period, 14,000 units were started and 10,000 units completed. Materials are added at the beginning of the process, conversion costs occur uniformly, and the inspection point is at the 70% point. Beginning work in process was 6,000 units, 40% complete, and ending work in process 9,000 units, 80% complete. The cost per equivalent unit for material was $1.00 and for conversion costs $3.00.
The cost of abnormal spoilage was:

• A) $200
• B) $1,550
• C) $155
• D) $2,000

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Definitions:

Corporate Integration

The process of combining different parts of a company or organizations to work more effectively as a whole.

Worth

The value of an asset, often measured in monetary terms, or the importance, usefulness, or contribution of something to a particular cause or context.

Alliances

Agreements or partnerships between two or more entities to pursue a set of agreed upon objectives while remaining independent.

Develop Strategy

The process of creating plans and tactics to achieve specific goals or outcomes.