The question is all on the picture.
Darren Food Lid produces a soft drink product called 'Excellent'. Direct materials are added at the end of the production process, and conversion costs are added evenly during the process. Some units of this product are spoiled as result of defects not detectable until inspection of finished goods when 90 percent of the process is completed. Spoiled units are disposed of at zero net disposal value. The following is the company's production data in Aug 2019 Physical Direct Conversion Units Materials Costs ('Excellent') Beginning work in process (1 Aug) 15,000 $1,050,000 $120,000 Degree of completion of beginning work in process 20% Started in Aug 30,000 Goods units completed and transferred out during 25,000 June Work in process, ending inventory (Aug 31) 14,000 Degree of completion of ending work in process 40% Total costs added during Aug $4,800,000 $564,500 Normal spoilage as a percentage of good units 10% Degree of completion of normal spoilage Degree of completion of abnormal spoilage Required: (a) For each cost category, compute equivalent units using (10 marks) weighted average method. Show physical units in the first column of your schedule (You are required to round up to two decimal points). (b) Summarize the total costs to account for; calculate the cost per (10 marks) equivalent unit for each cost category; and assign costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process. You are required to use weighted average method (You are required to round up to two decimal points). (c) Re-compute cost per equivalent unit using first-in-first-out (15 marks) method (FIFO). Show physical units in the first column of your schedule (You are required to round up to two decimal points). (d) Why should Darren Food Lid use process costing rather than (5 marks) job costing (be specific to this company)