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

Use the information below to answer the following question(s) .Waldorf Computer Systems, Inc.manufactures computer memory cards, and uses process-costing.All direct materials are added at the inception of the production process.The accounting department noted that there was no beginning inventory for January.Direct Materials purchases totalled $150,000 during the month.Work-in-process records revealed that 7,500 cards were started in January, 4,500 cards were complete, and 1,500 units were spoiled as expected.Ending work-in-process units are complete in respect to direct materials costs.Inspection occurs at the end of the process.
-At Waldorf Computer Systems Inc.spoilage costs allocated to completed units are larger by which method and by how much?

A) when spoiled units are recognized by $2,500
B) when spoiled units are recognized by $4,250
C) when spoiled units are ignored by $4,250
D) when spoiled units are ignored by $7,500
E) when spoiled units are recognized by $7,500