Answer:
C) $25,177
Explanation:
Spoiled units = (22,300 units + 76,400) - (72,900 units + 19,000)
=$98,700units -$91,900 units
= 6800 units
Normal spoilage = 5% × 72,900 units
= 3,645 spoiled units
Abnormal spoilage = 6800 units - 3645 units
= 3,155 units
Direct Materials ,Conversion Costs
WIP, beginning inventory$156,000$77,200
Costs added
during period 224,400 299,000
Total cost to account for 380,400 376,200
Divide by equivalent units*98,700 91,100
Equivalent-unit costs $3.85 $4.13
Equivalent unit
Direct Materials: 22,300 + 76,400 = 98,700 units
Conversion Costs: 72,900 + (19,000 x 60%) + 6800 = 91,100 units
Total cost per equivalent unit = $3.85 + $4.13 = $7.98
3155 units × $7.98 = $25,177
Therefore the cost allocated to abnormal spoilage using the weighted-average process-costing method will be $25,177
