Herbal Drinks Ltd manufactures the "FIT" brand of bottled herbal drink which is produced in three separate departments sequentially: Distilling, Blending, and Bottling. The following information of process inputs, outputs and work in process relates to the Bottling department for the month of March 2023:

	Litres
Opening work in process	26,700
Units started	110,600
Output completed	104,400
Closing work in process	29,200

The opening and closing work in process are respectively 40 per cent and 80 per cent complete as to conversion costs.

Direct materials are added at various stages in the Bottling department. The final process involves conducting a final quality inspection followed by adding the bottle before the good completed products are transferred to the Finished Goods Store. However, conversion costs are incurred evenly throughout the manufacturing process.

All direct materials, besides the bottle, are added by the time the DM reach a 50% stage of completion of conversion while the final inspection takes place at the 98% stage of completion.

Spoilages are assumed to occur at the stage of completion where the final inspection takes place, and these spoilages can be sold at an estimated disposal value $0.50 per litre. All spoilage is assumed to be from units started during the month.

The opening work in process included the transferred-in costs of $38,715 from the Blending department, raw material costs of $14,685 and conversion costs of $52,065.

Transferred-in costs, Blending department	$165,900
Raw material input	$66,360
Bottles	$52,200
Conversion costs	$241,412

Required:

(a) Using the 4-step approach:

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

(ii) Calculate the cost of goods transferred to the finished goods store at the end of March.

(iii) Calculate the cost of abnormal spoilage incurred in the Bottling department in March.

(iv) Calculate the cost of ending work in process in the Bottling department at the end of March.

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

(b) Examine and present all the necessary journal entries.