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:

Perceptions

The process of organizing, identifying, and interpreting sensory information in order to represent and understand the environment or an idea.

Intent

The purpose or intention behind an action, often determining its meaning or implications.

Person Schema

Cognitive structures that help individuals organize and interpret information about people, based on accumulated knowledge and experiences.

Role Schema

The cognitive structure that holds expectations and beliefs about the behaviors, attributes, and roles of individuals within certain contexts.