Nesrien Custom carpentry manufactures chairs in its processing department and uses the FIFO cost flow assumption. 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. inceptioin takes place at the end of the process, and spoiled units generally constitute 3 percent of the good output. information provided for March is provided above.

what costs are allocated to the ending work in process inventory for direct materials and conversion costs respectively?

WIP, beginning inventory march 1 30,000 units

Direct materials: 100% complete

conversion costs: 89.5% complete

Started during March 80,000 units

Completed & Transferred Out 86,000 Units

WIP, Ending inventory March 31 20,000Units

Direct materials: 100% completed

Conversion costs: 75% completed

Costs:

WIP, Beginning inventory:

Direct Materials $70,000

Conversion costs 40,000

Direct materials added 160,000

Conversion costs added 120,000

A) $ 40,000 : $23,100

B) $28,250 : $24,850

C) $30,000 : $23,100