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Nati & Titi Products Ltd. (NTPL) is a manufacturing firm located in Clayton. The company produces quality furniture that attract wide range of local customers and retailers that distribute the products in Australia. The accountant has asked you to assist in preparing a production report. All materials are added at the start of the production process and conversion costs are applied uniformly throughout the production process. The company uses process costing system with a weighted average costing approach. Actual data for the month of July 2022 is presented below:

Opening WIP: 1July	10,000	Units 40% complete
Materials	$62,000
Conversion	$92,000
Additional data for the month ofJuly:
Units completed & transferred out	36,000	units
Costs incurred during the month:
Materials	$694,000
Conversion	$766,000
Closing WIP: 31 July	6,000	units 50% complete

Required: (pleaseround all cost calculationstotwo decimal places-e.g.$35.28)

Please use the supplied production report to answer the following requirements.

1. Calculate the equivalent units for: (Hint: you need to do physical unit analysis first)

i.Materials

ii.Conversion

2.Calculate cost per equivalent unit for:

i. Direct materials

ii.Conversion

3.Calculate the total costs assigned to:

i.Units completed and transferred out in July.

ii.Work-in-process inventory at July 31.

4.Discuss a product costing system. Explain the steps involved in product costing systems.