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

question 19

Multiple Choice

Use the information below to answer the following question(s) .Cartwright Custom Carpentry manufactures chairs in its Processing Department, and uses the FIFO cost flow assumption.Direct Materials are included at the inception of the production cycle and must be bundled in single kits for each unit.Conversion costs are incurred evenly throughout the production cycle.Inspection takes place at the end of the process, and spoiled units generally constitute 3 percent of the good output.Information provided for March is as follows:

-What costs would be associated with normal and abnormal spoilage, respectively, using the FIFO method of process costing?

• A)$5,890.64; $9,133.20
• B)$5,890.64; $5,826.00
• C)$6,469.64; $7,690.36
• D)$7,690.36; $5,026.80
• E)$9,133.20; $5,026.80

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Definitions:

Pharynx

The part of the throat behind the mouth and nasal cavity, responsible for the passage of food to the esophagus and air to the larynx.

Esophagus

A muscular tube that conveys food from the mouth to the stomach.

Mouth

The opening in the body of most animals through which food is taken in, beginning the process of digestion.

Gallbladder

A small organ located under the liver, which stores and concentrates bile, a digestive fluid produced by the liver.