Samantha's Office Supplies Manufactures Desk Organizers in Its Processing Department

question 58

Multiple Choice

Samantha's Office Supplies manufactures desk organizers 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 3% of the good units. Data provided for February 2017 are as follows:

What are the direct material and conversion costs of all the units that were initially in the beginning work-in-process inventory and were subsequently shipped? Take into account the costs related to the completion of the conversion of the units during the month. Use the FIFO method of process costing. (Round any cost per unit calculations to the nearest cent.)

• A) $78,336; $44,000
• B) $0; $47,002
• C) $54,835; $48,782
• D) $40,239; $18,605

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Definitions:

Occupational Interest Inventory

A psychological assessment tool used to explore individuals' preferences and interests toward various professions or career paths.

Dictionary Of Occupational Titles

A publication that categorizes and describes over 20,000 different jobs and occupations, historically used in the United States for job classification.

Typical Interests

Common hobbies or activities that people engage in for enjoyment, relaxation, or satisfaction.

Vocational Choice

The process of selecting a career or profession based on personal preferences, strengths, and the assessment of future job opportunities.