Tong Ltd Is a Manufacturing Company That Uses a Process

question 48

Multiple Choice

Tong Ltd is a manufacturing company that uses a process costing system. All direct material is added at the start of the process, and spoilage is discovered at the end. During the first period of operations 15,000 units of material were placed into production at a cost of $20 each (ignore conversion costs for this process) . Ending work in process was 2,000 units, good units completed totaled 11,000 units, and normal spoilage is 15% of the units surviving inspection. Inspection takes place after the units are completed. The unit cost assigned to the abnormal spoilage is

• A) $-0-
• B) $22.61
• C) $20.00
• D) $24.00

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Definitions:

Price Quote

A formal statement or estimate given by a seller to a potential buyer detailing the price for goods or services offered.

Unless

Unless is a conjunction used to introduce a conditional clause, specifying an exception or a circumstance under which a statement does not apply.

Valid Inference

A logical conclusion drawn from premises that are accepted as true, ensuring the conclusion necessarily follows from them.