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

question 138

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 total costs of all the units that were started during February and subsequently shipped before the end of the period?

• A) $628,560
• B) $503,100
• C) $636,320
• D) $398,250

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Definitions:

Set Point

A theory suggesting that the body regulates certain variables, such as weight or temperature, around a specific value or "set point."

Ghrelin

A hormone produced in the stomach that stimulates appetite, promoting the intake of food by signaling the brain when the body needs energy.

Obestatin

A hormone believed to suppress appetite, produced in the stomach and intestines.

Appetite

The innate craving to fulfill a physical requirement, particularly for nourishment.