James Automotive Group Is a Maker of Engines for High

question 31

Multiple Choice

James 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 James' outstanding engine called "Superior-1".
James 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 "Superior-1" that are spoiled are the result of defects not discovered before inspection of finished units.Using the weighted-average method,what are the equivalent units for conversion costs?

• A)1,790 units.
• B)1,800 units.
• C)1,900 units.
• D)2,090 units. 1,700 + 200 + 100 + (.3 x 300)= 2,090

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