Tong, Inc Is a Manufacturing Company That Uses a Process Costing

question 92

Multiple Choice

Tong, Inc. is a manufacturing company that uses a process costing system. All direct material is added at the start of the process, and spoilage is discovered at the end. During the first period of operations 15,000 units of material were placed into production at a cost of $20 each (ignore conversion costs for this process) . Ending work in process was 2,000 units, good units completed totalled 11,000 units, and normal spoilage is 15% of the units surviving inspection. Inspection takes place after the units are completed.
The unit cost assigned to the ending work in process inventory is:

• A) $-0-
• B) $22.61
• C) $20.00
• D) $24.00

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Definitions:

Auricle

The external portion of the ear that directs sound waves into the ear canal.

Myringoplasty

A surgical procedure to repair a perforation in the eardrum to improve hearing and prevent water from entering the middle ear.

Labyrinth

A complex structure in the inner ear that contains the organs of hearing and balance, composed of the cochlea, vestibule, and semicircular canals.

Otitis

Inflammation or infection of the ear.