Quotion 2 paints Ltd manufactures paints. The is carried out in two plants A and B. paint (Without Colour) is in Plant A. split Off point is at end Of in Plant A. The paint is sold at per litre to an outside Enryer. The remainder is further processed in Plant B where other material and colour is added. On it costs EPL another S I .20 per litre to get its finished E*oducts - coloured paints. Coloured paints sell for SAS per 4 litres. EPL uses thc net realisable value to split joint costs in Plant A between paint base and coloured paints. On average Plant A prcxlwcs 140.(X) litres each month. Usually 40.000 litres of base paint are sold to external buyers. The rest are transferred to Plant B in tix following month to bc prcxcssed into coloured paints. EPL uses Weighted Average ("WA") process "Sting. In Plant B, all material and conversion costs are xlded evenly throughout the manufacturing Insction takes place when producticm is complete. All Sixiled paint is discarded. Currently, spoilage cost is considered as nonnal oilagc and included as part of tix of completed coloured paints. TIE cunpleted coloured guints that passai insFctim are TOA. s to stage till they are sola md shipFd to customers. There wae 2.(X) litres of coloured paints in WIP at the txginning of Oct 202X. These coloured iVints were 41P/. complete. At thc end of Oct 202X. there were I .000 litres of coloured paints left in WIP at Plant B. End WIP "erc complete During Oct 202X, 98.000 litres were startcd_ At the end of (kt 92,800 completed litres of coloured paints were transferred to storage Thc following table summarises of beginning WIP and new cost incurred in Plant B for Oct 202X: Transferred in C:cbt ) Direct material Conversion costs Beginning Plant B S7.S50 1.7(1) Current chiring Oct 202X Plant B S370.450 94.621 24.565