Answer the Following Questions Using the Information Below

question 4

Multiple Choice

Answer the following questions using the information below:
Triboro Computer Systems, Inc., manufactures printer circuit cards. All direct materials are added at the inception of the production process. During January, the accounting department noted that there was no beginning inventory. Direct materials purchases totaled $200,000 during the month. Work-in-process records revealed that 8,000 card units were started in January, 4,000 card units were complete, and 3,000 card units were spoiled as expected. Ending work-in-process card units are complete in respect to direct materials costs. Spoilage is not detected until the process is complete.
-What are the amounts allocated to the work-in-process ending inventory assuming spoilage units are recognized and ignored, respectively?

• A)$40,000; $49,000
• B)$60,000; $68,500
• C)$25,000; $40,000
• D)$75,000; $80,000