Answer the Following Questions Using the Information Below:
Samantha's Office

question 7

Multiple Choice

Answer the following questions using the information below:
Samantha's Office Supplies manufactures desk organizers 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 3% of the good units. Data provided for February 2015 are as follows:
$\begin{array} { l }\text { WIP, beginuing inventory } 2 / 1 / 2015&51,000 \text { units } \\ \text {Direct materials ( \( 100 \% \) complete) }\\ \text {Conversion costs ( \( 50 \% \) complete) }\\\\\text { Started during February } & 170,000 \text { units } \\\text { Completed and transferred out } & 180,000 \text { units } \\\\\text { WIP, ending inventory } 2 / 28 / 2015 & 26,000 \text { units }\\ \text {Direct materials ( \( 100 \% \) complete) }\\ \text { Conversion costs ( \( 25 \% \) complete) }\\\\\text { Costs: }\\\text { WIP, beginning inventory: }\\\text { Direct materials } & \$ 280,000 \\\text { Conversion costs } & 80,000 \\\text { Direct materials added } & 408,000 \\\text { Conversion costs added } & 264,000\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) $66,500; $10,700
• B) $60,000; $40,200
• C) $62,400; $9,750
• D) $39,000; $15,600

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Definitions:

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A new mother’s feelings of inadequacy and sadness in the days and weeks after giving birth.

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Exhibiting kindness and concern for others.

Gametes

Reproductive cells (sperm in males and eggs in females) that carry genetic information and can fuse during fertilization to start the development of a new individual.

Zygote

The initial cell formed when a sperm cell from a male fertilizes an egg cell from a female, marking the beginning of a new organism's development.