Question 2: Process Costing (10 marks) Steelcase Company manufactures tables for business and home offices. The manufacturing process involves the Production Department and the Quality Control Department, during which each table coming out of the Production Department is immediately transferred to the Quality Control Department. The company's process-costing system requires two cost categories being direct materials and conversion costs. Direct materials are added at the beginning of the process when the degree of completion for direct materials is determined. Conversion costs are added evenly during the process. The table below shows the relevant data for the Production Department for November 2020. Physical Direct Conversion Units Material Costs (tables) Costs 12 000 $14 000 $8 000 23 000 Work in process, 1 November 2020 (*) Started during November 2020 Completed during November 2020 Work in process, 30 November 2020 (**) Costs added during November 2020 30 800 4200 $38 000 $24 000 Note: (*) Degree of completion: 100% for direct materials and 40% for conversion cost (**) Degree of completion: 100% for direct materials and 35% for conversion cost CS Scanned with CamScanner Required: Determine the cost per equivalent unit for the Steelcase Company's direct materials and conversion costs, and the total unit cost for the current period, under the FIFO method. Show all workings. Templates are provided over the page for use. FIFO Method Equivalent units Physical units Flow of production Direct materials Conversion (tables) Units to account for: WIP, 1 November 2020 + Units started during current period Units to account for (total) Completed and transferred out -From WIP, 1 November -Started and completed in current period + WIP, 30 November -Units of work done in the current period CS Scanned with CamScanner Total production cost ($) Direct materials Conversion costs ($) (S) Costs to account for: WIP, 1 November 2020 +Costs added during current period = Total costs to account for Equivalent unit of work done in the current period Equivalent unit cost (FIFO) Carscanned with camscanner