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 undetectable material defects Spoiled units generally constitute 5 of the good units Data provided for March 2017 are as follows WIP, beginning inventory 3 1 2017 32,500 units Direct materials (100 complete) Conversion costs (90 complete) Started during March 70,300 units Completed and transferred out 80,000 units WIP, ending inventory 3 31 2017 18,700 units Direct materials (100 complete) Conversion costs (70 complete) Costs WIP, beginning inventory Direct materials $70,800 Conversion costs 40,300 Direct materials added 105,900 Conversion costs added 128,160 What costs are allocated to the ending workminusinminusprocess inventory for direct materials and conversion costs, respectively, using the FIFO method of process costing (Round any cost per unit calculations to the nearest cent

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 28, 2024

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

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 undetectable material defects. Spoiled units generally constitute 5% of the good units. Data provided for March 2017 are as follows:

WIP, beginning inventory 3/1/2017	32,500 units
Direct materials (100% complete)
Conversion costs (90% complete)
Started during March	70,300 units
Completed and transferred out	80,000 units
WIP, ending inventory 3/31/2017	18,700 units
Direct materials (100% complete)
Conversion costs (70% complete)
Costs:
WIP, beginning inventory:
Direct materials	$70,800
Conversion costs	40,300
Direct materials added	105,900
Conversion costs added	128,160

What costs are allocated to the ending

workminusinminusprocess

inventory for direct materials and conversion costs, respectively, using the FIFO method of process costing? (Round any cost per unit calculations to the nearest cent.