Please provide step by step solution for part B

Holding Co., a baker of European breads and pastries, uses a process-costing system. For its most popular selling item, you are provided with the following selected information for the month of November 2010.

Physical

Units % Complete

Beginning work in process 10,000 60%

Units completed 60,000

Ending work in process 20,000 40%

The beginning work in process inventory consisted of the following:

Transferred-in costs $ 10,875

Direct materials 1,750

Direct labour 1,750

Overhead applied 1,050

The actual overhead costs incurred during the month were $15,500. Costs added during November were:

Transferred-in costs $ 69,125

Direct material 15,750

Direct labour 29,000

Overhead applied ?

When the process is 15% complete, 40% of the direct materials are added with the remainder being added when the process is 50% complete. Conversion costs are incurred uniformly throughout processing. Overhead is applied on the basis of direct labour costs.

Required

a. By how much was overhead under- or over-applied during November? (3 marks)

b. What was the cost of the units completed and transferred out to the next department during November

i) under the weighted-average method? (8 marks)

ii) under the FIFO method? (8 marks)

c. What was the weighted-average cost of the ending WIP inventory for November?

(3 marks)

d. Will using the FIFO method result in a higher or lower cost per unit of ending WIP inventory? Why is there a difference between the FIFO and weighted-average methods? Do not calculate the amount. (3 marks)