Answer the Following Questions Using the Information Below:
Verer Custom

question 18

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 costs are allocated to the ending work-in-process inventory for direct materials and conversion costs,respectively,using the FIFO method of process costing?

• A) $28,250; $24,850
• B) $27,000; $25,920
• C) $40,000; $25,590
• D) $27,500; $23,600

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Definitions:

Psychological Disorders

Mental disorders characterized by patterns of behavior or thought that are significantly distressing or disabling in key areas of functioning.

Transference

Responding to one person (such as a psychoanalyst) in a way similar to how one responded to another person (such as a parent) in childhood.

Abusive Relationship

A pattern of abusive and coercive behaviors used to maintain power and control over another person in an intimate relationship.

Behavioral Therapist

A professional who focuses on modifying negative behaviors through reinforcement strategies and conditioning.