A company produces canned sodas in a one process department. Direct materials are introduced at the beginning of the process and conversion costs are applied consistently throughout the process. Data for the current period are as follows:

Beginning work in process inventory90,000 units

(30% complete for conversion cost)

Units started in current period520,000 units

Ending work in process inventory114,000 units

(60% complete for conversion cost)

Costs contained in beginning work in process inventory

Direct materials$205,500

Conversion costs$113,140

Costs added during current period

Direct materials$1,716,000

Conversion costs$1,128,540

Required:

a.Using the weighted average cost flow assumption: determine the equivalent unit cost, work in progress for direct material and conversion cost.(13 marks)

b.Using the FIFO cost flow assumption: determine the equivalent unit cost, work in progress for direct material and conversion cost.(8 marks)

c.Distinguish between normal and abnormal losses and explain how their accounting treatment differs.(4 marks)