Answer the Following Questions Using the Information Below:
Outose Concept

question 31

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:
$\begin{array}{ll}\text { WIP, beginuing inventory } 12 / 1 / 2015&22,000 \text { units }\\\text { Direct materials ( } 100 \% \text { complete) }\\\text { Conversion costs ( } 75 \% \text { complete) }\\\text { Started during December } & 76,000 \text { units } \\\text { Completed and transferred out } 12 / 31 / 2015 & 72,000 \text { units } \\\text { WIP, ending inventory } 12 / 31 / 2015 & 18,000 \text { units }\\\text { Direct materials ( } 100 \% \text { complete) }\\\text { Conversion costs ( } 65 \% \text { complete) }\\\\\text { Costs for December: }\\\text { WIP, beginuning Inventory: }\\\text { Direct materials } & \$ 150,000 \\\text { Conversion costs } & 76,800 \\\text { Direct materials added } & 222,400 \\\text { Conversion costs added } & 290,000\end{array}$
-What cost is allocated to abnormal spoilage using the weighted-average process-costing method?

• A) $ 0
• B) $14,720
• C) $39,936
• D) $19,456

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Definitions:

Glucose Concentrations

The amount of glucose present in the blood, important in the diagnosis and management of diabetes and other metabolic disorders.

Lactose

A disaccharide sugar composed of galactose and glucose, commonly found in milk and dairy products, which requires the enzyme lactase for digestion.

Temporal Gene Regulation

The control of the timing of gene expression, ensuring that genes are turned on and off at the right times during development or in response to environmental cues.

Organism's Life Cycle

The sequence of biological events and processes that an organism undergoes from its birth until it reproduces offspring.