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Problem 1: 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% completeee 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?
A. ? 8,796.25
b. ?11,325.22
C.?13,818.25
D. ?16,546.25
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