Use the Following Information for the Next 4 Questions

question 31

Multiple Choice

Use the following information for the next 4 questions.
Beginning work in process consists of 7,000 units, 55% complete. 50,000 units were started and ending work in process is 5,000 units, 25% complete. Normal spoilage is equal to 10% of the units inspected. The inspection point occurs at the 20% point and 7,000 units were rejected. Direct materials are added at the 50% point, direct labor at 30% and overhead is applied uniformly. The costs per equivalent unit are: direct material $1.00; direct labor $1.50; overhead $2.00.
-The cost of abnormal spoilage is

• A) $800
• B) $1,400
• C) $1,800
• D) $4,000

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Definitions:

Signatories

Parties that have signed a document, often a contract or agreement, indicating their acceptance of its terms.

Wills

A legal document by which a person expresses their wishes as to how their property is to be distributed at death and names one or more persons to manage the estate until its final distribution.

Express

Clearly and unmistakably communicated, directly stated, or specified.

Settlor

An individual or entity that creates a trust by legally transferring assets to a trustee for the benefit of beneficiaries.