Reference no: EM132849817
Question - Samantha's Office Supplies manufactures desk organizers in its Processing Department. Direct materials are added at the beginning of the process and conversion costs are incurred evenly throughout the production cycle. Inspection takes place at the end of the process and spoiled units generally constitute? 4% of the good units. Data provided for February are as? follows:
?WIP, beginning inventory February 1 ?25,000 units
Direct materials? (100% complete) ?Conversion costs? (50% complete)
Started during February ?82,000 units
Completed and transferred out ?81,000 units
??WIP, ending inventory February 28 15,000 units
Direct materials? (100% complete) Conversion costs? (25% complete)?
??Costs:
WIP, beginning? inventory:
Direct materials $150,000
Conversion costs 44,000
Direct materials added ?209,916
Conversion costs added ?109,893
What are the direct materials and conversion costs of all the units that were started and completed during? February?
A. ?$153,500
B.? $318,160
C.? $314,280
D. ?$143,360
E.? $217,280