Verer Custom Carpentry Manufactures Chairs in Its Processing Department

question 18

Multiple Choice

Verer Custom Carpentry manufactures chairs in its Processing Department. Direct materials are included at the inception of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection takes place as units are placed into production. After inspection, some units are spoiled due to undetectable material defects. Spoiled units generally constitute 5% of the good units. Data provided for March 2017 are as follows:

What costs are allocated to the ending work-in-process inventory for direct materials and conversion costs, respectively, using the FIFO method of process costing? (Round any cost per unit calculations to the nearest cent.)

• A) $64,676; $40,067
• B) $28,237; $24,740
• C) $28,352; $25,353
• D) $28,019; $15,091

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Definitions:

Delivering Shock

Administering an electrical shock to an individual or animal, often used in psychological experiments to study behavior.

Obedience

Obedience refers to compliance with commands given by an authority figure, often studied in psychology to understand the extent and limits of social influence over behavior.

Orders Over The Telephone

A process where customers or clients place orders for products or services by speaking directly to a supplier or service provider over the phone.

Obedience

The act of following orders or directions from someone in authority, often studied in psychology as a behavior.