Samantha’s Office Supplies manufactures desk organizers in itsProcessing Department. Direct materials are included at theinception of the production cycle and must be bundled in singlekits for each unit. Conversion costs are incurred evenly throughoutthe production cycle. Inspection takes place as units are placedinto production. After inspection, some units are spoiled due tonondetectible material defects. Spoiled units generally constitute4% of the good units. Data provided for February 2012 are asfollows.
What costs are allocated to the ending work-in-process inventoryfor direct materials and conversion costs, respectively, using theFIFO method of process costing?
(A) $80,000; $46,200
(B) $76,500; $9,700
(C) $99,000; $76,800
(D) $76,800; $9,900
Which answer is correct A,B,C,D ? All information for questionis provided
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