Outose Concept Manufactures Small Tables in Its Processing Department

question 7

Multiple Choice

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 undetectable materials defects. Spoiled units generally constitute 5% of the good units. Data for December 2017 are as follows:

What cost is allocated to abnormal spoilage using the weighted-average process-costing method? (Round any cost per unit calculations to the nearest cent.)

• A) $ 0
• B) $28,150
• C) $25,177
• D) $77,200

---

Definitions:

Traditional Interview

A conventional method of assessing candidates, typically face-to-face, involving a series of questions to evaluate their suitability for a position.

Interviewer's First Name

Using the first name of an interviewer in a dialogue or communication, often to create a personal connection.

Comparable Firms

Companies within the same industry or sector with similar business models and operational characteristics, used for benchmarking purposes.

Regional Averages

Statistical measures representing average values, prices, or conditions within a specific geographic region.