Use the Following to Answer Questions

Use the following to answer questions:
Oliver Corporation's Department 2 had 1,600 units in the beginning inventory (60% complete for conversion costs) . During July, 14,000 units were started into production; 14,400 good units were transferred to Department 3 and 400 units were left in the ending inventory, which were 40% complete for conversion costs. All materials are added at the end of the process in Department 2. Units are inspected at the completion of the process, at which point spoiled units are identified and disposed of. The cost of spoiled units is written off as an abnormal expense during the period. The following costs were assigned to Department 2 during the period:

-If the spoiled units were detected at the 50% point in the process instead of at the end of the process:

A) Oasis Corporation's profits for July would be higher
B) Oasis Corporation's profits for July would be lower
C) There would be no difference in Oasis Corporation's profits for July
D) It would depend upon whether Oasis is using the weighted-average or FIFO method