Question 2 [20 MARKS] a. Explain when process costing systems are appropriate. (5 marks) b. Explain the accounting treatment of normal and abnormal losses. (5 marks) c. A manufacturing process had no work-in-progress at the start of a period and no losses during the period. 3,200 units of raw material were input to the process during the period. 2,800 units were completed in the period. Closing work-in-progress was 100% complete with respect to materials and 70% complete with respect to conversion costs. Calculate the equivalent units of production in the period. (5 marks) d. A manufacturing process had no work-in-progress at the start of a period and no losses during the period. Completed output was 85,000 kg in the period during which 105,000 kg of material were input to the process. The closing work-in-progress was 60% complete. Conversion costs totaled P592,000 in the period. Compute the conversion cost per equivalent unit (to two decimal places). (5 marks) Q P - ASM - 0 0 1 | R e v 0 0 6 E f f D a t e : 1 8 - 0 3 - 2 0 2 1 Page 6 of 6 Question 3 [20 MARKS] ABC Limited has a financial year start on 1 March and ends on 28 February. The management Accountant of the company has just prepared the budget for the forthcoming year, based on the following cost structure: Number of units to be produced 7,000 Direct materials P49 per unit Direct Labour P21 per unit Indirect Labour (All variable) P28,000 Other manufacturing overheads (60% variable) P21,000 Selling & administrative expenses (all fixed) P28,000 Calculate the following: a. Prime costs per unit (3 marks) b. Total conversion costs (5 marks) c. Total manufacturing costs (5 marks) d. Total period costs (2 marks) e. Total variable manufacturing costs (5