Answer the Following Question(s)using the Information Below

question 13

Multiple Choice

Answer the following question(s) using the information below:
Hawk Ltd.uses process costing in its Fabricating Department.At the beginning of October, it had 12,000 units in beginning work-in-process that were 40% complete with respect to conversion.During October it put 87,000 units into production and completed 89,000 good units.At October 31, there were 3,000 units in ending work-in-process that were 70% complete with respect to conversion.Direct materials are added at the beginning of the process.Inspection occurs at the end of the process and normal spoilage is 6% of good output.Costs related to the beginning inventory were $36,800 for direct materials and $28,600 for conversion costs.During the month, the company issued $280,000 of direct materials and incurred $599,400 of conversion costs.
-What are the normal and abnormal spoilage units, respectively, for October assuming Hawk uses the weighted average method of process costing?

• A)5,340 units; 1,660 units
• B)7,000 units; 1,660 units
• C)5,220 units; 1,780 units
• D)5,340 units; 1,780 units
• E)5,940 units; 1,060 units

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