FruitQueen (FQ) produces canned fruits. One of its most popular products is canned longans. The fruits are delivered weekly from Thailand and processed at the factory The following information relates to production of canned longans for the month of July 2016 Work in process, 1 July 2016* Direct material fruit only Direct material other costs Conversion costs 5,000 units $3,000 $600 $2,500 Costs incurred during the month Direct material fruit only Direct material other costs Conversion costs $62,500 $12,100 $102,497 Total number of units started in July 110,000 units 3.500 units Work in process, 31 July 2016** Total number of units transferred out (completed) 110,000 units * All direct material 100% complete, conversion 50% complete ** All direct material 100% complete, conversion 40% complete All direct material is added at the start of the production process and conversion costs are incurred evenly throughout the production process. Products are inspected at the end of the production process and any spoilage is considered as normal spoilage by FO equired: (a) Using weighted-average process costing, prepare a production cost report for July 2016 showing (i) costs of completed units; and (ii) balance of work in process inventory at 31 July 2016. (Clearly show the cost per equivalent unit to the nearest cent for each cost category.) (16 marks) (b) Based on your answers from (a), write journal entries to describe (i) the manufacturing costs incurred in July; and (ii) the transfer of completed units at the end of July 2016. (Narrations are not required.) 4 marks) (c) If all spoiled units are considered as abnormal loss instead, what would be the impact on the FQ's reported profit for July? Support your conclusions with relevant computations (10 marks)