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 undetectable material defects. Spoiled units generally constitute 4% of the good units. Data provided for March 2020 are as follows: WIP, beginning inventory 3/1/2020 32,000 units Direct materials (100% complete) Conversion costs (90% complete) Started during March Completed and transferred out WIP, ending inventory 3/31/2020 Direct materials (100% complete) Conversion costs (80% complete) Costs: WIP, beginning inventory: Direct materials Conversion costs Direct materials added . • A. 590 units; 2028 units $70,200 40,500 106,000 . B. 3216 units; 484 units . C. 1982 units; 1404 units . D. 6399 units; 1528 units 128,160 70,800 units 80,400 units Conversion costs added What are the normal and abnormal spoilage units, respectively, for March when using FIFO? 18,700 units

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 undetectable material defects. Spoiled units generally constitute 4% of the good units. Data provided for March 2020 are as follows: WIP, beginning inventory 3/1/2020 32,000 units Direct materials (100% complete) Conversion costs (90% complete) Started during March Completed and transferred out WIP, ending inventory 3/31/2020 Direct materials (100% complete) Conversion costs (80% complete) Costs: WIP, beginning inventory: Direct materials Conversion costs Direct materials added . • A. 590 units; 2028 units $70,200 40,500 106,000 . B. 3216 units; 484 units . C. 1982 units; 1404 units . D. 6399 units; 1528 units 128,160 70,800 units 80,400 units Conversion costs added What are the normal and abnormal spoilage units, respectively, for March when using FIFO? 18,700 units

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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