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:

Paper Towel

A disposable absorbent towel made from paper, used for drying hands, wiping surfaces, or cleaning up spills.

Focal Plane

A specific plane through which light rays are sharply focused after passing through a lens or optical system.

Magnification

The process of making an object appear larger than its actual size, typically using lenses or microscopes.

Supportive Frame

A structural component or system designed to provide support and stability, often referring to skeletal or architectural structures.