Cookie Master Inc. manufactures bar cookies. These are produced in three separate departments sequentially: Blending, Forming, and Packaging. The following information of process input, output and work in process relates to the Forming department for the month of August 2023:

kg

Opening work in process 37,380

Bar cookies started 154,840

Bar cookies completed 137,760

Closing work in process 40,880

The opening and closing work in process are respectively 60 per cent and 40 per cent complete as to conversion costs.

Raw materials are added at the beginning of the manufacturing process. However, conversion costs are incurred evenly throughout the manufacturing process.

Spoilages are assumed to occur at the stage of completion where inspection takes place. All spoilages are assumed to be from units started during the month.

Inspection takes place when the products are 80% complete. The opening work in process included the transferred-in costs of $63,546 from the Blending department, raw material costs of $29,904 and conversion costs of $60,556. Costs incurred during the period were:

Transferred-in costs, Blending department $154,840

Raw material input $77,420

Conversion costs $285,096

The normal spoilage is 5 per cent of the units inspected.

Required:

(a) Assuming that the company uses FIFO method of process costing, use the 4-step approach:

(i) Compute the cost per equivalent unit for each product cost category for the month of August.

(ii) Calculate the cost of goods transferred to the packaging department at the end of August.

(iii) Calculate the cost of abnormal spoilage in August.

(iv) Calculate the cost of ending work in process in the forming department at the end of August.

(v) Calculate the unit cost of the goods transferred to packaging department (rounded to 2 decimal places).