Lokal Food Manufacturer produces the "Fresh" brand of pasteurised coconut milk from one of its manufacturing processes. The following information of process inputs, outputs and work in process relates to the month of September 2018:

kg

Opening work in process 26,700

Raw materials input 110,600

Output completed 98,400

Closing work in process 29,200

The opening and closing work in process are respectively 30 per cent and 60 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 and these spoilages can be sold to a bio-fuel company at an estimated disposal value $0.25 per kg. Inspection takes place when the products are 90% complete. The opening work in process included raw material costs of $60,920 and conversion costs of $35,597.

Costs incurred during the period were:

Raw material input $276,500 Conversion costs $373,248

The company uses FIFO method of process costing and assumes that the normal spoilage are 8 per cent of the good units produced.

Required:

(a) Using the 4 step approach:

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

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

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

(iv) Calculate the cost of ending work in process at the end of September.

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

(b) Pass all the necessary journal entries.