Question
Craft Concept manufactures small tables in its Processing Department. Direct materials are added at the initiation of the production cycle and must be bundled in
Craft Concept manufactures small tables in its Processing Department. Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some units are spoiled due to
nondetectable
materials defects. Inspection occurs at the end of the process. Spoiled units generally constitute 5 percent of the good units. Data for December are as follows:
WIP, Beginning inventory Dec 1 | 10,000 units |
Direct materials: 100% complete |
|
Conversion costs: 75% complete |
|
|
|
Started during December | 40,000 units |
|
|
Completed and transferred out during month | 38,400 units |
|
|
WIP, ending inventory December 31 | 8,000 units |
Direct materials: 100% complete |
|
Conversion costs: 65% complete |
|
|
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Costs: |
|
WIP, beginning inventory: |
|
Direct materials | $50,000 |
Conversion costs | 30,000 |
Direct materials added during December | 100,000 |
Conversion costs added during December | 140,000 |
What are the amounts of direct materials and conversion costs assigned to ending workinprocess using the weightedaverage process costing method?
A.$33,650; $14,140
B.$28,560; $14,160
C.$18,720; $24,000
D.$24,000; $18,720
E.$22,900; $19,820
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