Question Two: (40 marks ABC Sports is a manufacturer of sportswear. It produces all of its products in one department. The information for the current month is as follows: Beginning work in process Units started Units completed Ending work in process Spoilage 22,000 units 44,000 units 55,000 units 10000 units 1,000 units Beginning work-in-process direct materials Beginning work-in-process conversion Direct materials added during month Conversion costs during month $15,000 $7,400 $85,980 $56,044 Conversion costs are added evenly during the process. Direct materials are added at the beginning of the process. The inspection point is at the 70 % stage of production. Ending work in process was 65% complete. Normal spoilage is 1% of all good units that pass inspection. Required: Prepare a production cost worksheet if spoilage is recognized and the weighted-average method is used to compute the following: 1. Physical units (10 marks) 2- Equivalent units (10 marks) 3- Total cost to account for (10 marks) 4. Cost per equivalent (5 marks) 5. Cost assignment