Answer the Following Questions Using the Information Below:
Outose Concept

question 20

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:
$\begin{array}{ll}\text { WIP, beginuing inventory } 12 / 1 / 2015&22,000 \text { units }\\\text { Direct materials ( } 100 \% \text { complete) }\\\text { Conversion costs ( } 75 \% \text { complete) }\\\text { Started during December } & 76,000 \text { units } \\\text { Completed and transferred out } 12 / 31 / 2015 & 72,000 \text { units } \\\text { WIP, ending inventory } 12 / 31 / 2015 & 18,000 \text { units }\\\text { Direct materials ( } 100 \% \text { complete) }\\\text { Conversion costs ( } 65 \% \text { complete) }\\\\\text { Costs for December: }\\\text { WIP, beginuning Inventory: }\\\text { Direct materials } & \$ 150,000 \\\text { Conversion costs } & 76,800 \\\text { Direct materials added } & 222,400 \\\text { Conversion costs added } & 290,000\end{array}$
-Abnormal spoilage totals ________.

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

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Definitions:

Depressed Mood

A persistent feeling of sadness, hopelessness, or a lack of interest or pleasure in activities, characteristic of depression.

Major Depressive Disorder

A mood disorder featuring major depressive episodes (episodes of depressed mood or loss of pleasure in life that lasts at least 2 weeks).

Pleasure

A broad class of mental states that humans and other animals experience as positive, enjoyable, or worth seeking.

2 Weeks

A time period equivalent to fourteen days.