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

question 31

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:

-What are the amounts of direct materials and conversion costs assigned to ending work-in-process using the weighted-average process costing method?

• A)$18,720; $24,000
• B)$22,900; $19,820
• C)$24,000; $18,720
• D)$28,560; $14,160
• E)$33,650; $14,140

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Definitions:

Super Bowl

An annual championship game of the National Football League (NFL), widely considered the pinnacle of American football.

Information About Quality

Knowledge or data regarding the characteristics or attributes of a product or service that determine its overall value to a consumer.

Product-Variety Externality

External benefits or costs to society resulting from a variety of products beyond what would be provided by market forces alone.

Business-Stealing Externality

A negative externality that occurs when new products or services enter a market, reducing the sales and profitability of existing products or services.