Beginning Work in Process Consists of 7,000 Units, 55% Complete

question 93

Multiple Choice

Beginning work in process consists of 7,000 units, 55% complete. 50,000 units were started and ending work in process is 5,000 units, 25% complete. Normal spoilage is equal to 10% of the units inspected. The inspection point occurs at the 20% point and 7,000 units were rejected. Direct materials are added at the 50% point, direct labor at 30% and overhead is applied uniformly. The costs per equivalent unit are: direct material $1.00; direct labor $1.50; overhead $2.00. The cost of abnormal spoilage is

• A) $800
• B) $1,400
• C) $1,800
• D) $4,000

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Definitions:

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A learning process where individuals learn how to act or perform by observing others.

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