Delightful Winery produces bottled wines for the hospitality industry in a four$-$stage process $$

Pumping, Filtration, Filling and Capping. After leaving the Capping Department, the bottled wines are

packaged and sent to the Finished Goods warehouse for shipment to customers.

The following data relates to the Filling Department for the month of June during which $4,000$ bottled

wines valued at $$2,200,000$ were transferred from the Filtration Department to the Filling Department.

Other production costs incurred during the month are summarized as follows:

Direct Materials Added

Direct Manufacturing Wages

Manufacturing Overhead

$$342,000$

$$851,200$

$$410,400$

Process inspection occurs during the process and normally no losses are expected at this stage.

However, during the month $10\%$ of the bottled wines transferred into the Filling Department were

rejected at inspection. Rejected units from this department are sold as scrap at $$750$ per bottle.

These units had reached the following degree of completion:

Transfer from Filtration $100\%$

Direct material added $80\%$

Conversion costs $50\%$

During June $2,800$ bottled wines were completed and transferred to the Capping Department.

Work$-$in$-$progress at the end of June had reached the following degree of completion:

Transfer from Filtration $100\%$

Materials added $60\%$

Conversion costs $40\%$

Materials added and conversion costs are incurred uniformly throughout each process.

There were no incomplete units in the Filling Department at the beginning of the period.

Required:

$($a$)$ Prepare a statement of equivalent production to determine the equivalent units for direct

materials $($From Filtration & Direct Material Added$),$ and conversion costs and the cost per

equivalent unit for direct materials and conversion costs. $(10$ marks$)$