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Samantha's Office Supplies manufactures desk organizers in its Processing Department. Direct materials are included at the inception of the production cycle and must be
Samantha's Office Supplies manufactures desk organizers 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 nondetectible material defects. Spoiled units generally constitute 3% of the good units. Data provided for February 2021 are as follows: WIP, beginning inventory 1/2/2021 Direct materials Conversion costs Started during February Completed and transferred out WIP, ending inventory 28/2/2021 Direct materials Conversion costs Costs: WIP, beginning inventory: Direct materials Conversion costs Direct materials added Conversion costs added 51,000 units (100% complete) (50% complete) 170,000 units 180,000 units 26,000 units (100% complete) (25% complete) $280,000 80,000 408,000 264,000 What are the total costs of all the units that were started during February and subsequently shipped before the end of the period? Select one: a. $636,320 b. $398,250 c. $628,560 d. $503,100
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