10 Points total- no further information provided

The next 4 questions relate to the following information.

Fizz Ltd who manufacture sweats (lollies and chocolates) uses a process costing system. All direct materials are added at the beginning of the process and conversion costs are incurred evenly throughout production. The information for June's activities is given below:

Work in process 1 June - 20,000 units

Direct material (100% complete)

$44,000

Conversion cost (20% complete)

$9,000

Balance of work in process, 1 June

$53,000

Units started during June

200,000 units

Units completed during June and

transferred out to finished goods inventory

160,000 units

Work in process , 30 June:

Direct materials (100% complete)

Conversion (33 % complete)

Costs incurred during June:

Direct material

$396,000

Conversion costs:

$316,800

Direct labour$105,600

Manufacturing overhead$211,200

Total production costs incurred during June

$712,800

Required:(where necessary round off all figures to two decimal places)

Answer the following question using the weighted average method (WACM). Show all workings.

a.Show a summary of the total physical flow of units. (3.5 points)

Please use as much of the table below as you need, you can also delete or add rows and columns as needed. (Click the cursor inside a cell to see the table row and column options appear).

b.Calculate the equivalent units for the company. (3.5 points)

Please use as much of the table below as you need, you can also delete or add rows and columns as needed. (Click the cursor inside a cell to see the table row and column options appear).

c. Explain the term "Spoilage" in a factory's operations and provide two examples of what form of spoilage Fizz Ltd may encounter. (3 points)