Answer the following question(s)using the information below.Samantha's Office Supplies manufactures desk organizers in its Processing Department.Direct materials are added at the beginning of the process and conversion costs are incurred evenly throughout the production cycle.Inspection takes place at the end of the process and spoiled units generally constitute 4% of the good units.Data provided for February are as follows:

-What costs would be associated with normal and abnormal spoilage, respectively, using the FIFO method of process costing?
A)$12,571; $30,108
B)$30,108; $12,571
C)$1,257; $3,010
D)$8,000; $4,000
E)$10,627; $25,453

Question

Answer the following question(s)using the information below.Samantha's Office Supplies manufactures desk organizers in its Processing Department.Direct materials are added at the beginning of the process and conversion costs are incurred evenly throughout the production cycle.Inspection takes place at the end of the process and spoiled units generally constitute 4% of the good units.Data provided for February are as follows:
 
-What costs would be associated with normal and abnormal spoilage, respectively, using the FIFO method of process costing?
A)$12,571; $30,108 
B)$30,108; $12,571 
C)$1,257; $3,010 
D)$8,000; $4,000 
E)$10,627; $25,453

Quizplus · Accepted Answer

Under FIFO process costing, normal spoilage costs are typically absorbed by the good units produced, while abnormal spoilage costs are treated as a separate expense. The given costs of $12,571 for normal spoilage and $30,108 for abnormal spoilage align with this understanding.

Answer the Following Question(s)using the Information Below