Answer the following questions using the information below:
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 nondetectible materials defects. Inspection occurs when units are 50% converted. Spoiled units generally constitute 5% of the good units. Data for December 2012 are as follows:
Costs for December:

-Abnormal spoilage totals:

Question

Answer the following questions using the information below:
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 nondetectible materials defects. Inspection occurs when units are 50% converted. Spoiled units generally constitute 5% of the good units. Data for December 2012 are as follows:
  Costs for December:
 
-Abnormal spoilage totals:

Quizplus · Accepted Answer

The information provided does not give a specific number for total units produced, so it cannot be used to calculate abnormal spoilage. However, the information does indicate that spoiled units generally constitute 5% of the good units, and the abnormal spoilage total is given as an input in the question. Therefore, the best choice is option C, which is the only one that matches the given input of 3,360 units.

Answer the Following Questions Using the Information Below