Required information [The following information applies to the questions displayed below.] Scrooge and Zilch, a public accounting firm in London, is engaged in the preparation of income tax returns for individuals. The firm uses the weighted-average method of process costing for internal reporting. The following information pertains to February. ( denotes the British monetary unit, pounds sterling.)* Returns in process, February 1: (37% complete) 470 Returns started in February 1,240 Returns in process, February 28: (70% complete) 510 Returns in process, February 1: Labor 4,100 Overhead 5,000 Labor, February (6,380 hours) 89,320 Overhead, February 61,951 *Although the euro is used in most European markets, day-to-day business in the United Kingdom continues to be conducted in pounds sterling.

Required information The following information applies to the questions displayed below.] Scrooge and Zilch, a public accounting firm in London, is engaged in the preparation of income tax returns for individuals. The firm uses the weighted-average method of process costing for internal reporting. The following information pertains to February. (E denotes the British monetary unit, pounds sterling.) Retns in prcess, February 1 (37% Returns started in February Returns in process,February 28: 470 1,240 complete) (70% complete) 510 Returns in process, February 1 Labor Overhead E 4,100 5,000 89,320 61,951 Labor, February (6,380 hours) overhead, February Although the euro is used in most European markets, day-to-day business in the United Kingdom continues to be conducted in pounds sterling. 2. Compute the cost of returns in process as of February 28. Cost of returns in process