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

question 22

Multiple Choice

Use the information below to answer the following question(s) .Cartwright Custom Carpentry manufactures chairs in its Processing Department, and uses the FIFO cost flow assumption.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 at the end of the process, and spoiled units generally constitute 3 percent of the good output.Information provided for March is as follows:

-What are the normal and abnormal spoilage units, respectively, for March?

• A)2,580 units; 1,420 units
• B)1,950 units; 1,390 units
• C)1,690 units; 1,050 units
• D)1,420 units; 2,580 units
• E)1,140 units; 1,140 units

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Definitions:

Western Electric Company

An American electrical engineering and manufacturing company that was instrumental in the development of the telecommunications industry.

Japanese Manufacturing

Japanese Manufacturing is characterized by its emphasis on efficiency, quality control, and continuous improvement, popularizing practices like Just-In-Time production.

Upper Control Limit

In process control, the highest value on a control chart that a process variable can reach before it is considered to be out of control, indicating a need for action.

Lower Control Limit

In statistical process control, the lower threshold that signifies the process variance is acceptable. If the process goes below this limit, it indicates a problem.