Question 2: Costing Systems (20 marks) Best Fans Ltd mass-produces small electric fans in NSW for home use. All direct materials are added at the beginning of production, which means that WIP inventories are 100% complete with respect to direct materials. Conversion costs are incurred evenly throughout production. The following production information is for the month of October: Physical units: Started in October 150 000 Completed in October 141 000 Ending WIP (70% completed) 22 500 Beginning WIP (30% completed) 13 500 Costs: Beginning WIP costs: Direct materials DM $27 000 Conversion costs CC $54 000 Cost added in October: Direct materials DM $150 000 Conversion costs CC $300 000 Best Fans Ltd uses the Weighted Average Method in its process costing