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

question 150

Multiple Choice

Use the information below to answer the following question(s) .Waldorf Computer Systems, Inc.manufactures computer memory cards, and uses process-costing.All direct materials are added at the inception of the production process.The accounting department noted that there was no beginning inventory for January.Direct Materials purchases totalled $150,000 during the month.Work-in-process records revealed that 7,500 cards were started in January, 4,500 cards were complete, and 1,500 units were spoiled as expected.Ending work-in-process units are complete in respect to direct materials costs.Inspection occurs at the end of the process.
-At Waldorf Computer Systems Inc.spoilage costs allocated to completed units are larger by which method and by how much?

• A)when spoiled units are recognized by $2,500
• B)when spoiled units are recognized by $4,250
• C)when spoiled units are ignored by $4,250
• D)when spoiled units are ignored by $7,500
• E)when spoiled units are recognized by $7,500

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Definitions:

Focus Strategy

A competitive strategy where a business targets a specific niche in the market, catering to the unique needs of its segment.

Marketplace

A physical or digital space where buyers and sellers interact to exchange goods, services, or information.

Target

An objective or goal that an individual or organization aims to achieve within a certain timeframe.

Analyzer Strategy

A business approach where a company carefully monitors its competitors' successful innovations and then follows suit, trying to improve upon them.