Fen Furnishings produces brass handles for the furniture industry:r in a four-stage process Mixing, Moulding, Polishing and Packaging. Costs incurred in the Polishing Department duringJanuary are summarized as follows: WIP - Polishing Process A/C January 1 Bal. S 0 Transfer from Moulding 20,000 1,310,000 Direct Materials Added 391,600 Direct Labour 638,000 Manufacturing Overhead 3075100 Normal losses are estimated to be 2396 of input during the period. Inspection takes place during the processing operation, at which point damaged handles are separated from good handles and sold as scrap to local furniture manufacturers at $85 each. At inspection, 2,000 handles were rejected as scrap. These units had reached the following degree of completion: Transfer from Moulding 100% Direct material added 40% Conversion costs 20% Workinprogress at the end ofJanuarv was 4,000 handles and had reached the following degree of completion: Transfer from Moulding 100% Direct material added 80% Conversion costs 50% Direct materials added and conversion costs are incurred uniformiy throughout the process. Required: la) Compute the equivalent units and cost per equivalent units for direct materials (From Mouiding 8: Direct moteriais added) and conversion costs. {10 marks) (b) Compute the: ' cost of the unexpected losses ' totai cost of the handles completed and transferred out ofthe Packaging Department I cost of ending work in process inventory in the Polishing Department {3 marks) [c] Complete the Work in Process Inventory Polishing Process T-account, clearly showing the ending balance. {5 marks) id) Prepare the journal entries for the: -assignment of direct materials, direct labour incurred and the manufacturing overhead applied to the Polishing Process ' cost ofthe units completed and transferred out to the Packaging Process (5 marks) (e) Given that 30% ofthe unexpected losses were as a result of pilferage, calculate Fen Furnishings true ioss associated with the Polishing Process. (2 marks)