Scrapping the Bottom, Inc. is a manufacturer of peanut butter. The jars of peanut butter pass through two sequential production departments before landing in finished goods inventory. The company's first processing department, machining, reported the following information for its most recent month of operations: direct materials direct labor allocated MOH costs in beginning $4,320 $1,040 $1,790 work in process costs added during $52,800 $21,500 $32,250 the month The machining department's beginning inventory consisted of 5,000 physical units that were 80% complete with respect to direct material and 60% complete with respect to conversion. During the month, 45,000 physical units were started in the department. At month end, 8,000 physical units were in the department's ending inventory. The units in ending inventory were 75% complete with respect to direct material and 50% complete with respect to conversion. You asked one of the staff members on your team to calculate the cost to machine a unit for the most recent month of operations. The staff member emailed you the following calculations: DM C total costs to account for $57,120 $56,580 divided by units 48,400 46,800 cost per unit $1.18 $1.21 $2.39 Where did they go wrong? A. They used the percentage of completion for units in beginning inventory instead of the percentage of completion for units in ending inventory. B. They failed to account for units in ending inventory. C. They did not include the beginning inventory costs on the total costs to account for line. OD. They divided the total costs to account for by total physical units instead of total equivalent units. E. They forgot to include allocated manufacturing overhead in the conversion costs.