Use the Information Below to Answer the Following Question(s)

question 47

Multiple Choice

Use the information below to answer the following question(s) .Craft 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 non-detectable materials defects.Inspection occurs at the end of the process.Spoiled units generally constitute 5 percent of the good units.Data for December are as follows:

-Under the FIFO method, all spoilage costs are assumed to be

• A)related to the units in beginning inventory, plus the units completed during the period.
• B)related to the units completed during the period.
• C)related to the units in ending inventory.
• D)related to the units in both beginning and ending inventory plus the units completed during the period.
• E)related to the units completed in both beginning and ending inventory.

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Definitions:

Gradual Changes

Slow and incremental alterations or developments that occur over time.

Period Of Years

A span of time that consists of multiple years, often used to describe durations in historical, developmental, or future contexts.

Fake Good

The act of presenting oneself in an overly positive manner, often to appear more favorable in psychological evaluations or social situations.

Inaccurate Responses

Refers to responses or answers that do not correctly reflect the truth or intended information, often due to mistakes, misunderstandings, or deliberate falsehoods.