Apco manufactures desk organizers in its Processing Department. Direct materials are included at the start of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection takes place as units reach 80% of the production. Normal spoiled units generally constitute 1% of the good units (units that pass inspection point). Data provided for March 2020 are as follows: Apco uses FIFO method.

WIP, beginning inventory 65,000 units Direct materials (100% complete)

Conversion costs (60% complete)

Started during March 135,000 units Completed and transferred out 140,000 units

WIP, ending inventory 30,000 units Direct materials (100% complete)

Conversion costs (30% complete)

Costs:

WIP, beginning inventory:

Direct materials	$400,000
Conversion costs	50,000
Direct materials added	600,000
Conversion costs added	300,000

1. Compute the normal spoilage units. (10 marks)
2. Compute the equivalent units for direct material. (10 marks)
3. Compute the equivalent units for conversion cost. (10 Marks)
4. Compute the cost per equivalent. (5 marks)
5. Compute the total cost for completed units. (5 marks)
6. Compute the total cost for ending work in process. (5marks)