The XYZ Company has three processing departments. Units must go through all three departments before they are transferred to finished goods inventory. Direct materials are added in the first and third departments.

Information Concerning Department C (last processing department): Direct materials are added at the 70% stage of completion. For every unit transferred in, $2.05 of direct materials are added.

Direct material addition does not increase the number of units.

Inspection for spoiled units occurs when units are 55% complete. Conversion costs are incurred evenly throughout the process.

The company’s policy is to treat the cost of spoiled units in production as a separate element of cost in the department in which the spoilage occurs.

March Activity Data—Department C: nju74

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Units: Beginning units in process.. 10% are 40% complete 60% are 65% complete 18.900 30% are 90% complete. Units received from preceding department. 25,300 Units transferred to finished goods inventory. 38.000 Ending units in process. 5,800 5% are 30% complete 25% are 50% complete 40% are 60% complete 30% are 80% complete