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