Outose Concept manufactures small tables in its Processing Department. Direct materials are added at the initiation of t

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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 the inspection, some units are spoiled due to
undetectable materials defects. Inspection occurs when units are
60% converted. Spoiled units generally constitute 6% of the good
units. Data for December 2017 are as follows: WIP, beginning
inventory 12/1/2017 22,500 units Direct materials (100% complete)
Conversion costs (75% complete) Started during December 76,700
units Completed and transferred out 12/31/2017 72,300 units WIP,
ending inventory 12/31/2017 18,400 units Direct materials (100%
complete) Conversion costs (65% complete) Costs for December: WIP,
beginning Inventory: Direct materials $159,000 Conversion costs
77,800 Direct materials added 232,400 Conversion costs added
293,000 What is the number of total spoiled units? Group of answer
choices 8,500 units 4,162 units 10,435 units 4,338 units