Answer the Following Questions Using the Information Below:
Outose Concept

question 113

Multiple Choice

Answer the following questions using the information below:
Outose 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 nondetectible materials defects. Inspection occurs when units are 50% converted. Spoiled units generally constitute 4% of the good units. Data for December 2015 are as follows:
$\begin{array}{ll}\text { WIP, beginuing inventory } 12 / 1 / 2015&22,000 \text { units }\\\text { Direct materials ( } 100 \% \text { complete) }\\\text { Conversion costs ( } 75 \% \text { complete) }\\\text { Started during December } & 76,000 \text { units } \\\text { Completed and transferred out } 12 / 31 / 2015 & 72,000 \text { units } \\\text { WIP, ending inventory } 12 / 31 / 2015 & 18,000 \text { units }\\\text { Direct materials ( } 100 \% \text { complete) }\\\text { Conversion costs ( } 65 \% \text { complete) }\\\\\text { Costs for December: }\\\text { WIP, beginuning Inventory: }\\\text { Direct materials } & \$ 150,000 \\\text { Conversion costs } & 76,800 \\\text { Direct materials added } & 222,400 \\\text { Conversion costs added } & 290,000\end{array}$
-Normal spoilage totals ________.

• A) 3,200 units
• B) 8,000 units
• C) 2,880 units
• D) 5,120 units

---

Definitions:

Format Cells Dialog

A feature in spreadsheet software that allows users to change the appearance of cells, including their borders, colors, and number formatting.

Column Width

The horizontal measurement of a column in a table or spreadsheet, affecting how much content can be displayed within it.

Page Layout View

A view that displays how a document will appear when printed.

Comma Style Button

A feature in spreadsheet software that applies a specific number format with a comma as the thousand separator.