The following details are provided for a company operating a process costing system: -

Process 1

Opening work in process (WIP) Nil

Units introduced into the process 15,000

Units completed and transferred to next Process 2 10,000

Closing WIP (50% complete) 5,000

Materials cost (introduced at start of process) 70,000

Conversion cost 50,000

Process 2

Opening WIP Nil

Units transferred from Process 1 10,000

Closing WIP (50% complete) 1,000

Completed units transferred to finished goods stock 9,000

Previous process cost 95,000

Conversion costs 55,000

Materials (introduced at the end of the process) 35,000

Required:

(a) Compute the equivalent units and cost per equivalent unit for the month for Processes 1 and 2.

(b) Prepare the cost allocation for Processes 1 and 2.