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?
Definitions:
Investment Turnover
A measure of a company's efficiency in using its assets to generate sales or revenue.
Profit Margin
A financial indicator representing the proportion of income that surpasses the expenses related to the sale of goods, demonstrating a company's profitability.
Activity Bases
A reference used in managerial accounting to allocate costs to products or services, based on activities that generate costs, such as machine hours or labor hours.
Purchase Requisitions
An internal document used in a business to request the procurement department to order goods or services.
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