James Automotive Group Is a Maker of Engines for High

question 17

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 total conversion costs in ending inventory?

• A)$22,500.
• B)$40,000.
• C)$40,500.
• D)$180,000. (300 x.3)x $450 = $40,500