QUESTION 3 20 points Save Answer Maxima Canine Products manufactures toys for dogs and cats. The most popular toy is a small ball that dispenses tiny treats and is placed within a larger ball. To get the treats, dogs must roll the balls around until the treats fall out. These balls are mass produced from plastic. Direct materials are introduced at the beginning of the process, and conversion costs are incurred evenly throughout the manufacturing process. Once each unit is completed, it is transferred to finished goods. Data for the month of March are as follows: Beginning Work in process (30% complete) Direct Material $25 000 Conversion costs 3 000 Total $28 000 Units started during March 80 000 units Units completed & transferred out during March 88 000 units Ending WIP inventory (50% complete ) 12 000 units Direct material cost added during March $220 000 Conversion costs added during March $74 000 Required (a) Prepare a process cost report using the FIFO method. (18 marks) (b) Suppose the percentage completion of ending WIP is overestimated at the end of March. How does this measurement error affect the process costing result in March & in April? (2 marks )