09:03 5A168 BA 91% " moodle.hsu.edu.hk 3 3/6 H Question 2 (20 marks) Susan Company produces a product called 'N96' which required to go through two processes, Process I and Process 2. The following information relates to Process 2 for the month of March 2020: Units Percent Completed Materials Conversion Work-in-process, 1 March 21,000 80% 60% Transferred from Process 1 and started in Process 2 84,000 Completed and transferred out 73,500 Work-in-process, 31 March 31,500 30% 40% Costs for March Transferred-in from Process 1 ($) Materials ($) Conversion ($) Work-in-process, 1 March 120,000 19,000 17,000 Added during the month 462,000 264,600 183,750 It is the company's policy to adopt FIFO method in its process costing system. Required: (a) Determine the equivalent units for transferred-in from Process 1, materials and conversion for March. (4 marks) (b) Determine the cost per equivalent unit for transferred-in from Process 1, materials and conversion for March. (3 marks) (c) Determine the total cost of ending work-in-process inventory and the total cost of units transferred to finished goods in March. (6 marks) (d) Briefly explain how the adoption of a lean manufacturing approach affects process costing. (3 marks) (e) Normal loss is included in the cost of good output units, while abnormal loss is recorded as a period cost.' Comment on this statement. (4 marks) [Total for Question 2: 20 marks] 3