P5.35 LO 5.2 Analysis of work in process inventory account; T-accounts: manufacturer Fauxhemian Ltd mass-produces antique-style furniture using an assembly line process. All direct materials are introduced at the start of the process, and conversion cost is incurred evenly throughout manufacturing. An examination of the company's work in process inventory account for April revealed the following selected information: Debit side: 1 April balance: 200 units, 25% complete as to conversion, cost $54000* Production started: 800 units Direct material used during April: $129000 April conversion cost: $90000 Credit side: Production completed: 600 units *Supplementary records revealed direct material cost of $36000 and conversion cost of $18000. Discussions with manufacturing staff revealed that the ending work in process was 75 per cent complete with respect to conversion costs.

Required Using weighted average process costing: 1. Determine the number of units in the 30 April work in process inventory. 2. Calculate the cost of goods completed during April and prepare the appropriate journal entry to record completed production. 3. Determine the cost of the 30 April work in process inventory. 4. Briefly explain the meaning of equivalent units. Why are equivalent units needed to properly allocate costs between completed production and production in process?