A) 3,620 units B) 8,000 units C) 4,380 units D) 4,020 units

Outose 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 undetectable materials defects. Spoiled units generally constitute 5% of the good units. Data for December 2017 are as follows: WIP, beginning inventory 12/1/2017 22,700 units Direct materials (100% complete) Conversion costs (70% complete) Started during December 76,300 units Completed and transferred out 12/31/2017 72,400 units WIP, ending inventory 12/31/2017 18,600 units Direct materials (100% complete) Conversion costs (65% complete) Costs for December WIP, beginning Inventory: Direct materials Conversion costs Direct materials added Conversion costs added $150,000 77,300 232,400 297,000 Normal spoilage totals