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 total costs of all the units that were started during February and subsequently shipped before the end of the period?
A) $628,560
B) $434,560
C) $636,320
D) $307,000
Correct Answer:
Verified
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