Use the Following Information for the Next 5 Questions

question 117

Multiple Choice

Use the following information for the next 5 questions.
You are given the following information for the SJK Company for January: The total processing cost per equivalent unit was $15 in January. SJK considers spoilage equal to 5% of the good units transferred out to finished goods to be normal. SJK uses the weighted average method of process costing for its sole production department, and inspection for spoiled units occurs at the end of processing.
-The costs attached to normal spoilage total

• A) $35,250
• B) $30,000
• C) $20,250
• D) $9,750

---

Definitions:

Transaction Analysis

The examination of a business transaction to understand its effects on the financial statements.

Cash Flows

The inflows and outflows of cash and cash equivalents, indicating a company's liquidity and financial health over a period.

Transactions Identified

The process of recognizing and documenting specific financial events in the appropriate accounting period.

Accounts Used

Refers to specific accounts in the general ledger that are impacted by transactions and financial events of a business.