Answer the Following Questions Using the Information Below:
Verer Custom

question 23

Multiple Choice

Answer the following questions using the information below:
Verer Custom Carpentry manufactures chairs in its Processing Department. 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 as units are placed into production. After inspection, some units are spoiled due to nondetectible material defects. Spoiled units generally constitute 4% of the good units. Data provided for March 20X5 are as follows:
$\begin{array}{ll}(\text { WIP, beginuing inventory } 3 / 1 / 20 \times 5&32,000 \text { units }\\\text { Direct materials ( } 100 \% \text { complete) }\\\text { Conversion costs ( } 85 \% \text { complete) }\\\\\text { Started during March } & 70,000 \text { units } \\\text { Completed and transferred out } & 80,000 \text { units } \\\\\text { WIP, ending inwentory } 3 / 31 / 20 \times 5 & 18,000 \text { units }\\\text { Direct materials ( } 100 \% \text { complete) }\\\text { Conversion costs ( } 80 \% \text { complete) }\\\\\text { Costs: }\\\text { WIP, beginning inventory: }\\\hline \text { Direct materials } & \$ 70,000 \\\quad \text { Conversion costs } & 40,000 \\\text { Direct materials added } & 105,000 \\\text { Conversion costs added } & 128,160\end{array}$
-What are the normal and abnormal spoilage units,respectively,for March when using FIFO?

• A) 3,200 units; 800 units
• B) 1,950 units; 1,390 units
• C) 3,690 units; 1,850 units
• D) 1,420 units; 2,000 units

---

Definitions:

Dopamine

A neurotransmitter in the brain that plays a major role in reward-motivated behavior and is involved in many functions, including motivation, arousal, and motor control.

Norepinephrine

Norepinephrine is a neurotransmitter and hormone involved in the body's fight or flight response, affecting heart rate, blood pressure, and glucose metabolism.

Seasonal Affective Disorder

A type of depression that occurs at a specific time of year, usually in winter, due to reduced natural sunlight.

Melatonin Dysregulation

An imbalance in the production or timing of melatonin release, affecting sleep patterns and potentially contributing to sleep disorders.