Question 2 (25 marks) ACME Company produces liquid soap in a one-process department. Direct materials are introduced at the beginning of the process. Conversion costs are applied consistently throughout the process. Data for the current period are as follows: Beginning work in process inventory (40% complete for conversion cost) Units started in current period Ending work in process inventory (60% complete for conversion cost) 45 000 units 260 000 units 57 000 units Costs contained in beginning work in process inventory Direct materials Conversion costs Costs added during current period Direct materials Conversion costs $103 800 $ 40 348 $ 860 000 $ 620 000 Required: a. Using the weighted average cost flow assumption: determine the equivalent unit cost, work in progress for direct material and conversion cost. (13 marks) b. Using the FIFO cost flow assumption: determine the equivalent unit cost, work in progress for direct material and conversion cost. (8 marks) c. Discuss TWO factors that may lead to normal process loss. (4 marks)