Pinky Bhd. uses a process cost system. Production begins in the Fabricating Department where materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. On 1 March , the beginning work in process inventory consisted of 20,000 units which were 60% complete and had a cost of RM125,000, RM95,000 of which were materials costs. During March, the following occurred:

Materials added RM230,000 Conversion costs incurred RM129,000 Units completed and transferred out in March 50,000 Units in ending work in process 31 March (20% complete) 15,000

Required:

a) How many physical units have to be accounted for in March? (6 marks)

b) What are the equivalent units of production for materials and for conversion costs for the month of March? (8 marks)

c) What are the unit costs for materials, conversion and the total unit cost? (7 marks) d) What is the total cost assigned? (4 marks)

(Total 25 marks)