Question 4 (Process costing) Payson Company produces a product that passes through two departments: Mixing and Cooking. In the Mixing Department, all materials are added at the beginning of the process. All other manufacturing inputs are added uniformly. The following information pertains to the Mixing Department for February: 1) Beginning work in process, February 1: 100,000 pounds, 100 percent complete with respect to materials and 40 percent complete with respect to conversion costs. The costs assigned to this work are as follows: Materials $20,000 Labour 10,000 Overhead 30,000 ii) Ending work in process , February 28: 50,000 pounds, 100 percent complete with respect to materials & 60 percent complete with respect to conversion costs. iii) Units completed and transferred out: 370,000 pounds. The following costs were added during the month: Materials $211,000 Labour 100,000 Overhead 270,000 Required: a) Compute the cost per equivalent unit using FIFO method (7 Marks) b) Compute the cost of goods transferred out and cost of ending work in process using FIFO method (6 Marks) (Total = 13 Marks)