Universal Automotive Group Is a Maker of Engines for High

question 4

Multiple Choice

Universal Automotive Group is a maker of engines for high performance cars and uses a process costing system. The following information pertains to the final department of manufacturing for Universal's most popular engine, the "Atomic 8". $\begin{array}{lr}\text { Beginning work-in-process ( } 40 \% \text { completed) } & 400 \text { units } \\\text { Transferred-in } & 1,600 \text { units } \\\text { Normal spoilage } & 100 \text { units } \\\text { Abnormal spoilage } & 100 \text { units } \\\text { Good units transferred out } & 1,400 \text { units } \\\text { Ending work-in-process }(25 \% \text { completed) } & 400 \text { units }\\\text { Conversion costs in beginning inventory } & \$ 180,500 \\\text { Current conversion costs } & \$ 728,218\end{array}$ Universal Automotive Group calculates separate costs of spoilage by computing both normal and abnormal spoiled units. Normal spoilage costs are reallocated to good units and abnormal spoilage costs are charged as a loss. The units of the Atomic 8 that are spoiled are the result of defects not discovered before inspection of finished units. Using the weighted-average method, answer the following question:
What are the total conversion costs of abnormal spoilage?

• A) $60,518.
• B) $53,454.
• C) $64,908.
• D) $58,314.

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Definitions:

Lymphocytes

A subtype of white blood cells involved in the immune response, including B cells, T cells, and natural killer cells.

Major Histocompatibility Complexes

A set of cell surface proteins important for the immune system to recognize foreign molecules, playing a critical role in antigen presentation.

T-cell Receptors

Molecules found on the surface of T-cells that are responsible for recognizing fragments of antigen as peptides bound to major histocompatibility complex (MHC) molecules.

Foreign Antigens

Substances that are recognized by the immune system as non-self, triggering an immune response.