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

question 10

Multiple Choice

Use the information below to answer the following question(s) .Craft Concept manufactures small tables in its Processing Department.Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit.Conversion costs are incurred evenly throughout the production cycle.Before inspection, some units are spoiled due to non-detectable materials defects.Inspection occurs at the end of the process.Spoiled units generally constitute 5 percent of the good units.Data for December are as follows:

-The costs of abnormal spoilage are

• A)locked-in in the product design stage.
• B)part of the inventoriable costs when units are reworked.
• C)included in the cost of goods manufactured.
• D)highlighted on the cash flow statement to draw the readers attention.
• E)written off as losses.

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Definitions:

Uterus

The hollow organ within females in which the embryo and fetus develop.

Embryo

An early stage of development in multicellular organisms, in humans, it refers to the period from conception to the eighth week of pregnancy.

Fetus

A developing human from roughly eight weeks after conception until the time of birth, characterized by rapid growth and development of organs and structures.

Mutations

Changes in the DNA sequence of an organism's genome, which can lead to variations in physical traits or the development of diseases.