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

question 151

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:

-What cost is allocated to abnormal spoilage using the weighted-average process costing method?

• A)$0
• B)$7,360
• C)$11,088
• D)$16,400
• E)$18,100

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