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Samantha's Office Supplies manufactures desk organizers in its Processing Department. Direct materials are included at t
Posted: Thu Apr 28, 2022 11:02 am
by answerhappygod
- Samantha S Office Supplies Manufactures Desk Organizers In Its Processing Department Direct Materials Are Included At T 1 (110.23 KiB) Viewed 25 times
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 2021 are as follows: WIP, beginning inventory 1/2/2021 51,000 units Direct materials (100% complete) Conversion costs (50% complete) Started during February 170,000 units Completed and transferred out 180,000 units WIP, ending inventory 28/2/2021 26,000 units Direct materials (100% complete) Conversion costs (25% complete) Costs: WIP, beginning inventory: Direct materials $280,000 Conversion costs 80,000 Direct materials added 408,000 Conversion costs added 264,000 What are the total costs of all the units that were started during February and subsequently shipped before the end of the period? Select one: O a. $636,320 O b. $398,250 C. $628,560 O O d. $503, 100