q2

Susan Company produces a product called "N96' which required to go through two processes, Process 1 and Process 2. The following information relates to Process 2 for the month of March 2020: Units Percent Completed Materials Conversion 80% 60% Work-in-process, 1 March Transferred from Process 1 and started in Process 2 Completed and transferred out Work-in-process, 31 March 21,000 84,000 73,500 31,500 30% 40% Costs for March Work-in-process, 1 March Added during the month Transferred-in from Process 1 (S) 120,000 462,000 Materials ($) 19,000 264,600 Conversion (S) 17,000 183,750 It is the company's policy to adopt FIFO method in its process costing system. Required: (a) Determine the equivalent units for transferred-in from Process I, materials and conversion for March. (4 marks) (b) Determine the cost per equivalent unit for transferred-in from Process 1, materials and conversion for March (3 marks) (c) Determine the total cost of ending work-in-process inventory and the total cost of units transferred to finished goods in March. (6 marks) (d) Briefly explain how the adoption of a lean manufacturing approach affects process costing. (3 marks) (e) "Normal loss is included in the cost of good output units, while abnormal loss is recorded as a period cost. Comment on this statement. (4 marks)