Outose Concept Manufactures Small Tables in Its Processing Department

question 128

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. Inspection occurs when units are 55% converted. Spoiled units generally constitute 5% of the good units. Data for December 2017 are as follows:

What is the amount of direct materials and conversion costs assigned to ending work in process using the weighted-average process-costing method? (Round any cost per unit calculations to the nearest cent.)

• A) $40,484; $49,644
• B) $74,860; $51,870
• C) $74,100; $52,402
• D) $156,293; $12,620

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Definitions:

Expected Counts

The theoretical frequency of occurrences in each category of a contingency table under the assumption of independence in a chi-square test.

Goodness-of-fit Test

A statistical test used to determine how well a statistical model fits a set of observations. It measures the discrepancy between observed values and the values expected under the model in question.

SAS Proficiency

The level of skill and knowledge in using Statistical Analysis System (SAS) software for statistical analysis.

Statistical Software

Computer programs designed to perform statistical analysis, helping in data entry, manipulation, and presentation of results.