Question

The following information is available for Jensen Corporation for the current month: Started this month 80,000...

The following information is available for Jensen Corporation for the current
month:

Started this month 80,000 units
Beginning WIP:
(40% complete) 7,500 units
Normal Spoilage (discrete) 1,100 units
Abnormal spoilage 900 units
Ending WIP
(70% complete) 13,000 units
Transferred out 72,500 units
Beginning Work in Process Costs:
Material $10,400
Conversion 13,800
Current Costs:
Material $120,000
Conversion 350,000

All materials are added at the start of production and the inspection point is at
the end of the process.
Refer to Jensen Corporation. What is the cost assigned to normal spoilage and
how is it classified using weighted average?

Select one:
a. $6,193 assigned to loss account
b. $6,424 assigned to units Transferred Out
c. $6,424 allocated between WIP and Transferred Out
d. $6,193 allocated between WIP and Transferred Out
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