Multiple Choice
Andersen Corporation
Andersen Corporation has the following information for the current month:
| Units started | 95,000 units |
| Beginning Work in Process: (30% complete) | 15,000 units |
| Normal spoilage (discrete) | 3,000 units |
| Abnormal spoilage | 4,000 units |
| Ending Work in Process: (75% complete) | 15,000 units |
| Transferred out | 88,000 units |
| Beginning Work in Process Costs: | |
| Material $18,000 | |
| Conversion 14,000 |
All materials are added at the start of the production process.Andersen Corporation inspects goods at 75 percent completion as to conversion.
Refer to Andersen Corporation.Assume that the costs per EUP for material and conversion are $2.00 and $2.25,respectively.What is the cost assigned to normal spoilage,using weighted average,and where is it assigned?
A) $11,063 Units transferred out and Ending Inventory
B) $11,063 Units transferred out
C) $12,750 Units transferred out and Ending Inventory
D) $12,750 Units transferred out
Correct Answer:
Verified
Correct Answer:
Verified
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