Page 1 Intermediate Management Accounting Constructed-Response Questions (5 questions - 120 minutes) Enter your responses in one word processor file (.docx format) and one spreadsheet file (.xlsx format). Question 1 (8 marks) CME Manufacturing Corp. makes widgets and uses a process costing system. All the raw materials are added at the beginning of the process, finishing materials are added at 90% completion and conversion costs are added evenly throughout the process. Spoilage is detected at 85% completion. The following information is from the last production month: 40% complete Beginning work-in-process Units started 1,500 units 8,000 units Good units transferred out Normal spoilage Abnormal spoilage Ending work-in-process -60% complete 7.000 units 3% of good units transferred out unknown 2,000 units Required: a) Calculate the equivalent units of production using the weighted average method of process costing (6 marks) b) Explain what would be different in the calculation of equivalent units if part a) were completed using the first in, first out (FIFO) method of process costing. (2 marks)