The Waylon Manufacturing Company adds a second direct material in Department 2 at the 40% stage of

Question:

The Waylon Manufacturing Company adds a second direct material in Department 2 at the 40%

stage of completion. The direct material increases the number of units in process. Conversion costs are incurred evenly throughout the process. Spoiled units are detected 50% of the way through the process.

The cost accountant has not been allocating spoiled unit costs but has followed the policy of offsetting the spoiled units against transferred in units (theory of neglect).

Below is January data for Department 2. mlo7

image text in transcribed