Question 2 Flu Buster Ltd manufactures a type of oral flu vaccine in capsules. These are produced in three separate departments sequentially: Mixing, Encapsulating, and Packaging. The following information of process inputs, outputs and work in process relates to the Encapsulating department for the month of April 2022: kg Opening work in process 26,700 Raw materials input 110,600 Output completed 98,400 Closing work in process 29,200 The opening and closing work in process are respectively 50 per cent and 70 per cent complete as to conversion costs. Raw materials are added at the beginning of the manufacturing process. However, conversion costs are incurred evenly throughout the manufacturing process. Spoilages are assumed to occur at the stage of completion where inspection takes place. All spoilages are assumed to be from units started during the month. Inspection takes place when the products are 90% complete. The opening work in process included the transferred-in costs of $200,250 from the Mixing department, raw material costs of $106,800 and conversion costs of $80,100. Costs incurred during the period were: Transferred-in costs, Mixing department $553,000 Raw material input $331,800 Conversion costs $456,880 The normal spoilage is 3 per cent of the units inspected. Required: (a) Assuming that the company uses FIFO method of process costing, use the 4-step approach: (i) Compute the cost per equivalent unit for each product cost category for the month of April. (20 marks) (ii) Calculate the cost of goods transferred to the Packaging department at the end of April. (6 marks) (iii) Calculate the cost of abnormal spoilage in April. (4 marks)