Verer Custom Carpentry manufactures chairs 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. Normally spoiled units generally constitute 4% of the good units transferred out. Data provided for March 20X5 are as follows: WIP, beginning inventory 3/1/20X5 32,000 units Direct materials (100% complete) Conversion costs (85% complete) Started during March 70,000 units Completed and transferred out 80,000 units WIP, ending inventory 3/31/20X5 18,000 units Direct materials (100% complete) Conversion costs (80% complete) Costs: WIP, beginning inventory: Direct materials $ 70,000 Conversion costs 40,000 Direct materials added 105,000 Conversion costs added 128,160 What costs are allocated to the ending work-in-process inventory for direct materials and conversion costs, respectively, using the FIFO method of process costing? What costs are allocated to the ending work-in-process inventory for direct materials and conversion costs, respectively, using the FIFO method of process costing? O $40,000; $25,590 $27,000, $25,920 O $28,250; $24,850 O $27,500; $23,600