Question 2 (20 marks) 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 Work-in-process, 1 March 21,000 80% 60% Transferred from Process 1 and started in Process 2 84,000 Completed and transferred out 73,500 Work-in-process, 31 March 31,500 30% 40% Costs for March Transferred-in from Process 1 ($) Materials ($) Conversion ($) Work-in-process, 1 March 120,000 19,000 17,000 Added during the month 462,000 264,600 183,750 It is the companys policy to adopt FIFO method in its process costing system. Required: (a) Determine the equivalent units for transferred-in from Process 1, 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) [Total for Question 2: 20 marks]

Question 2 (20 marks) 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 ($) 120,000 462,000 Materials (S) 19,000 264,600 Conversion ($) 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) [Total for Question 2: 20 marks]