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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

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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