Wade 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 are as follows:

WIP, beginning inventory 12/1 30,000 units

Direct materials (100% complete)

Conversion costs (70% complete)

Started during December 80,000 units

Completed and transferred out 12/31 95,000 units

WIP, ending inventory 12/31 5,000 units

Direct materials (100% complete)

Conversion costs (70% complete)

Costs for December:

WIP, beginning Inventory:

Direct materials $ 200,000

Conversion costs 80,800

Direct materials added 259,400

Conversion costs added 310,000

What cost is allocated to abnormal spoilage using the weighted-average process-costing method? (ROUND COST PER EQUIVALENT UNIT TO TWO DECIMAL PLACES)

	A.	$0
	B.	$40,845
	C.	$39,936
	D.	$36,955