Answer the following questions using the information below:C…
Answer the following questions using the information below:Cartwright 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 nondetectible material defects. Spoiled units generally constitute 3% of the good units. Data provided for March 20X5 are as follows:WIP, beginning inventory 3/1/20X5 30,000 units Direct materials (100% complete) Conversion costs (89.5% complete)Started during March 80,000 unitsCompleted and transferred out 86,000 unitsWIP, ending inventory 3/31/20X5 20,000 units Direct materials (100% complete) Conversion costs (75% complete)Costs: WIP, beginning inventory: Direct materials $ 70,000 Conversion costs 40,000 Direct materials added 160,000 Conversion costs added 120,000What costs are allocated to the ending work-in-process inventory for direct materials and conversion costs, respectively, using the FIFO method of process costing?
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