Universal Automotive Group Is a Maker of Engines for High

question 79

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 transferred to finished goods?

• A) $801,810.
• B) $855,720.
• C) $921,340.
• D) $910,000.

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Definitions:

Rapid Eye Movements

Quick movements of the eyes that occur during certain stages of sleep, particularly REM sleep, which is associated with dreaming.

Contradictory Information

refers to data or statements that are in direct opposition to each other, making it impossible for both to be true at the same time.

Hypnosis

A state resembling trance where focus and suggestibility are increased, commonly utilized for healing purposes.

REM Sleep

A stage of sleep characterized by rapid eye movements, paralysis of major muscles, faster breathing, and dreaming.