Melbourne Pen Depot is a family owned business that begun operations in the heart of Melbourne back in 1960. The business was established by a person called Fred Arndtheim. The business marked substantial growth over the years and this led to relocation of its trading area to South Melbourne. The business venture has successfully traded at 3 different locations in The Chadstone Shopping Centre until July 30th 2016. The business is now conducting its trading activities fully online. The accountant has gathered information extracted from the Assembly department that relates to a product called Lamy Safari Gift Pack. All materials are added at the start of the production process while conversion costs are applied uniformly throughout the production process. The business uses process costing with a weighted average costing approach. Summary of operations conducted during June 2020 are presented below:

Opening WIP: 1 June	4,000	units	50%	complete
Materials	$80,000
Conversion	$92,000
Additional data for the month of June:
Units started in June	24,000	units
Costs incurred in June:
Materials	$676,000
Conversion	$835,200
Closing WIP: 30 June	6,000	units 40% complete

Required: (please round all cost calculations to two decimal places e.g. $21.47)

Please use the supplied production report to answer the following requirements.

1. Calculate the equivalent units for: (Hint: you need to do physical unit analysis first)

i. Materials

ii. Conversion

2. Calculate cost per equivalent unit for:

i. Direct materials

ii. Conversion

3. Calculate the total costs assigned to:

i. Units completed and transferred out in April.

ii. Work-in-process inventory at April 30.

4. Discuss a product costing system. Explain the steps involved in product costing systems.

(70 to 120 words)