Question 2 Hot Handle Company {\"IlH'j manufactures non-stick frying pans. HH uses process costing and Weighted average costing to account for product costs. The manufacturing process takes place in two sequential departments. Frying pans completed in Moulding Department during a certain calendar month are transferred to Assembly Departmont to be attached with the handle and packaging, in the ltowr'ng month. The cost data relating to April and I'litlayr 2020: Moulding Assembly Department Department [April 202a) (May zero) mm\" mm \"\"6\"\" Beginning WEI? DM $2,000 cc $1,000 Transferred in $2,000 _\" There Was no beginning and ending work in prerSs {"WIP") in April 2020 for the Moulding Department. All material and conversion costs are added evenly throughout the Moulding process. In Assembly Department, handles {raw material) are added at the beginning of the production process. Frying pans are inspected at 00% point in Assembly Departrnent. If a frying pan does not pass the inspection, no packaging cost is added to the product cost, and the defective frying pans are discarded. At the end of the production process in Assembly Departrnont, 'good' frying pans are transferred to the warehouse for storage. There were 4,000 units of frying pans in WIP at the beginning of May 2020 in Assembly Department. These frying pans wore 50% complete with reapeet to conversion eosts. Conversion costs are incurred evenly throughout the production process. At the end of May 2020, there were 1,000 frying pans in WI]? and these frying pans were 30% complete with respect to oonversion costs. During May 20201 130,000 frying pans were started. At the end of May 2020, 172,000 nished -ying pans were transferred to the warehouse. Normal spoilage is set at 3% of inected 1:13ij pans.