Answer the following questions using the information below:
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 4% of the good units. Data provided for February 2012 are as follows:
Costs:

-What are the normal and abnormal spoilage units, respectively, for February when using FIFO?
A) 2,800 units; 2,960 units
B) 6,560 units; 3,280 units
C) 6,480 units; 15,520 units
D) 6,480 units; 22,000 units
Correct Answer:
Verified
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