Use the Following Information for the Next 6 Questions

question 11

Multiple Choice

Use the following information for the next 6 questions.
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:

Aspirin

A medication used to reduce pain, fever, inflammation, and is also used in low doses to prevent blood clots.

Deductible

Eligible expenses that can be subtracted from gross income to reduce taxable income.

Loan Fees

Charges associated with the origination, maintenance, or closure of a loan, ranging from application fees to prepayment penalties.

Deductible

An expense that can be subtracted from gross income to reduce taxable income.