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 P6.25. In Department C, unit costs for materials, labor and applied overhead are P4.00, P3.00 and P3.875, 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? P8,796.25 P11,325.22 P13,818.25 P16,546,25

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 P6.25. In Department C, unit costs for materials, labor and applied overhead are P4.00, P3.00 and P3.875, 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? P8,796.25 P11,325.22 P13,818.25 P16,546,25

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Description: AEE Company manufactures a product that passes in four departments in acontinuous process. Department C had no beginning work in process andtransferred in 36,000 units from Depa rtment B, each with equivalent unit cost ofP6.25. In Department C, unit

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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