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

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Definitions:

Impedance

The total resistance to the flow of alternating current in a circuit, combining both resistive and reactive elements.

Reactive Power

The portion of electricity that oscillates between the source and load, stored and discharged by inductive or capacitive components, not converted to work.

Inductive Reactance

The opposition that an inductor presents to the change in current flow due to its stored magnetic energy, expressed in ohms.

Parallel Circuit

An electrical circuit in which components are connected across common points or junctions to provide multiple paths for current to flow.