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

question 61

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 are the direct material and conversion costs of all the units that were initially in the beginning work-in-process inventory and were subsequently shipped? Take into account the costs related to the completion of the conversion of the units during the month.Use the FIFO method of process costing.

• A) $76,500; $49,700
• B) $0; $38,250
• C) $60,000; $40,200
• D) $39,000; $15,600

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Definitions:

Variable Ratio Schedule

A reinforcement schedule in which a response is rewarded after an unpredictable number of responses, making it highly effective for maintaining behavior.

Sales Commission

A form of incentive pay calculated as a percentage of the sales an employee generates for the business.

Behavior Modification

A technique aimed at changing or shaping individuals' behavior through the use of reinforcement or punishment.

Experiential Learning

A learning process through direct experience, allowing individuals to acquire knowledge, skills, and values from real-life activities.