what was the total costs of lost units?

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 5E: The Converting Department of Worley Company had 2,400 units in work in process at the beginning of...
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AEE Company manufactures a product that passes in four departments in a continuous process. Department C had no beginning work in process and transferred in 36,000 units from Department B, each with equivalent unit cost of ₱6.25. In Department C, unit costs for materials, labor and applied overhead are ₱4.00, ₱3.00 and ₱3.875, respectively. Direct materials in Department C are added at the beginning of the process. Department C had 9,600 units in the ending work in process which are 65% complete as to conversion costs. If 1,240 units were lost in Department C at AEE’s inspection point where conversion costs were 45% complete, what was the total costs of lost units?

₱ 8,796.25

₱11,325.22

₱13,818.25

₱16,546.25

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