Use the Information Below to Answer the Following Question(s)

Use the information below to answer the following question(s) .Craft 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 non-detectable materials defects.Inspection occurs at the end of the process.Spoiled units generally constitute 5 percent of the good units.Data for December are as follows:

-Total cost per equivalent unit using the weighted-average method equals

A) the cost per equivalent unit of direct materials plus cost per spoiled unit.
B) the cost per equivalent unit of conversion costs plus cost per unit of spoiled materials.
C) the total costs divided by total equivalent units.
D) the cost per equivalent unit of direct materials plus the cost per equivalent unit of conversion costs.
E) the cost per equivalent unit of indirect materials plus cost per spoiled unit.

Correct Answer:

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