Use the Information Below to Answer the Following Question(s)

question 150

Multiple Choice

Use the information below to answer the following question(s) .Waldorf Computer Systems, Inc.manufactures computer memory cards, and uses process-costing.All direct materials are added at the inception of the production process.The accounting department noted that there was no beginning inventory for January.Direct Materials purchases totalled $150,000 during the month.Work-in-process records revealed that 7,500 cards were started in January, 4,500 cards were complete, and 1,500 units were spoiled as expected.Ending work-in-process units are complete in respect to direct materials costs.Inspection occurs at the end of the process.
-At Waldorf Computer Systems Inc.spoilage costs allocated to completed units are larger by which method and by how much?

• A)when spoiled units are recognized by $2,500
• B)when spoiled units are recognized by $4,250
• C)when spoiled units are ignored by $4,250
• D)when spoiled units are ignored by $7,500
• E)when spoiled units are recognized by $7,500

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Definitions:

Integrity

The quality of being honest and having strong moral principles; moral uprightness.

Job Evaluation System

A methodical process used by organizations to determine the relative value or complexity of job roles for the purpose of establishing fair pay rates.

Excessive Overlaps

Situations in which responsibilities, activities, or areas of operation between roles or projects significantly overlap, leading to inefficiency or conflict.

Compensable Factor

Elements or aspects of a job that are used to determine its value and thereby influence the compensation provided for that job.