Anzio Company manufactures a recycling container in its forming department. Direct Material are added at the beginning of the production process. Conversion costs are added evenly during the production process. Some units of this products are spoiled as a result of defects which are detectable only upon inspection of finished units. Normally spoiled units are 10% of the finished output of good units thus for every 10 good units produced there is 1 unit of normal spoilage. Summary data for the month of July 2022 are as below

Work in Progress (WIP) at July 1, 2022 were 1500 units costing Sh. 21000/=

Level of completion of beginning WIP is as follows Materia 100% and Conversion is 60%

Input during the month is 8500 units of materials costing 76,500/= Conversion cost incurred during the period was 89,100/=

During the month of July 2022 7000 units were completed and transferred and Ending WIP was 2000 units whose level of completion was material 100% and conversion 50%.

There was spoilage was 1000 units and abnormal spoilage was was complete as follows Material 100% and Conversion 100%

Anzio uses FIFO method in its process costing system

Required

a) Calculate per equivalent unit for material and conversion

b) Summarize total costs to account for and assign total costs to units transferred and losses

c) Value the Ending work in progress