Answer the Following Questions Using the Information Below

question 23

Multiple Choice

Answer the following questions using the information below:
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 nondetectible materials defects. Inspection occurs when units are 50% converted. Spoiled units generally constitute 5% of the good units. Data for December 2012 are as follows:
Costs for December:

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

• A)$37,440; $48,000
• B)$45,800; $39,640
• C)$48,000; $37,440
• D)$57,120; $28,320

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Definitions:

Developing Nations

Countries with a lower standard of living, underdeveloped industrial base, and low Human Development Index relative to other countries.

Foreign Corrupt Practices Act

A U.S. law that prohibits American companies and their subsidiaries from bribing foreign officials to retain or obtain business.

Fines

Monetary penalties imposed as punishment for breaking laws or regulations.

Domestic Concern

Matters or businesses pertaining to the internal affairs or operations of a specific country.