Outose Concept Manufactures Small Tables in Its Processing Department

question 6

Multiple Choice

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 undetectable materials defects.Inspection occurs when units are 55% converted.Spoiled units generally constitute 5% of the good units.Data for December 2017 are as follows:

Costs for December:

What is the amount of direct materials and conversion costs assigned to ending work in process using the weighted-average process-costing method? (Round any cost per unit calculations to the nearest cent. )

• A)$40,484;$49,644
• B)$74,860;$51,870
• C)$74,100;$52,402
• D)$156,293;$12,620

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Definitions:

Variance Reports

Financial analyses that compare actual performance against planned or budgeted performance.

Form Content

Refers to the specific subject matter covered by a document or form, detailing the various elements and information it encompasses.

Manufacturing Overhead Costs

Expenses related to the manufacturing process that are not directly tied to the production of goods, such as utilities, depreciation of equipment, and factory maintenance.

Standard Hours

The established amount of time required to perform a task under normal conditions.