Verer Custom Carpentry manufactures chairs in its Processing Department. Direct materials are included at the inception

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Verer Custom Carpentry Manufactures Chairs In Its Processing Department Direct Materials Are Included At The Inception 1 (107.58 KiB) Viewed 51 times

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 2021 are as follows: WIP, beginning inventory 1/3/2021 32,000 units Direct materials (100% complete) Conversion costs (85% complete) Started during March 70,000 units Completed and transferred out 80,000 units WIP, ending inventory 31/3/2021 18,000 units Direct materials (100% complete) Conversion costs (80% complete) Costs: WIP, beginning inventory: Direct materials $70,000 Conversion costs 40,000 Direct materials added 105,000 Conversion costs added 128,160 What are the normal and abnormal spoilage units, respectively, for March when using FIFO? Select one: O a. 1,950 units; 1,390 units O b. 1,420 units; 2,000 units O C. 3,200 units; 800 units O d. 3,690 units; 1,850 units