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

question 146

Multiple Choice

Use the information below to answer the following question(s) .Waldorf Computer Systems, Inc.manufactures computer memory cards, and uses process-costing.All direct materials are added at the inception of the production process.The accounting department noted that there was no beginning inventory for January.Direct Materials purchases totalled $150,000 during the month.Work-in-process records revealed that 7,500 cards were started in January, 4,500 cards were complete, and 1,500 units were spoiled as expected.Ending work-in-process units are complete in respect to direct materials costs.Inspection occurs at the end of the process.
-At Waldorf Computer Systems Inc.what amounts are allocated to ending work-in-process inventory assuming spoilage units are recognized in the equivalent unit calculation, and that they are ignored, respectively?

• A)$27,500; $30,000
• B)$30,000; $34,250
• C)$30,000; $37,500
• D)$37,500; $40,000
• E)$30,000; $40,000

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Definitions:

Demand Shock

A sudden event that significantly alters demand for goods or services, either positively or negatively, in an economy.

Supply Shock

An unexpected event that suddenly changes the supply of a product or commodity, leading to sudden price changes and/or shifts in the market.

Dollar-Yen Exchange Rate

The rate at which one can exchange US dollars for Japanese yen, indicating the value of one currency in terms of the other.

Japanese Producer

A Japanese Producer refers to a company or individual involved in the manufacturing or production sector within Japan, known for its automotive, electronics, and technology industries.