Nevada Ltd manufactures pharmaceutical products. One of its products, B-Plus, is processed in two separate departments. In the first department several chemicals are added at the beginning of the process and conversion costs are incurred evenly throughout the process. The product manufactured in department 1 is inspected at the 50% stage of completion. The completed product is then transferred from department 1 to department 2, where more material is added to the transferred-in product at the beginning of the process. Production in department 1 is highly technical and as a result inspection is only done at the end of the process. The following information relates to the month of September 2020:

Department 1	Department 2
Beginning work-in-progress at 1 September 2020:
Percentage of process completed	40%	70%
Physical units	2 000	1 290
Materials cost	N$40 000	N$13 019
Conversion costs	N$11 935	N$18 665
Transferred in costs	-	N$45 734
During the month of September 2020:
Units started	28 000	?
Materials added	N$560 000	N$201 000
Conversion costs	N$128 250	N$170 620

Closing work-in-progress at September 2020:
Percentage of process completed	60%	40%
Physical units in process	4 000	2 300

1. Nevada Ltd values closing stock on a weighted average basis. 2. Normal losses in department 1 are allowed up to 10% of good output. 3 900 units were found to be spoiled in department 1 during the month of September 2020. 3. Normal losses in department 2 are allowed up to 20% of good output. 4. 15 000 good units were completed and transferred in department 2 during the month of September 2020

REQUIRED:	MARKS
Prepare the following statements for September 2020:
3.1	Quantity statement inclusive of equivalent units for Department 1.	7
3.2	Cost per equivalent unit for Department 1	3
3.3	Quantity statement inclusive of equivalent units for Department 2.	7
3.4	Cost per equivalent unit for Department 2.	3
TOTAL MARKS FOR QUESTION 3	20