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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Definitions:

Product Market

The marketplace where final goods or services are offered to consumers, businesses, and the government.

Positive

In economics, referring to factual statements or analyses about how the world is, as opposed to normative statements which are about how the world ought to be.

National Defense

The government activities and measures taken to protect a country and its citizens from external and internal threats, including maintaining armed forces and developing defense strategies.

Positive

Characterized by the presence of something rather than its absence; in economics, often used to describe factual statements or analysis.