Question 1. Thirsty Ltd who manufacture orange juice use a process… Question 1.Thirsty L

Question 1. Thirsty Ltd who manufacture orange juice use a process… Question 1.Thirsty Ltd who manufacture orange juice use a process costing system. All direct materials are added at the beginning of the process and conversion costs are incurred evenly throughout production. The information for April’s activities is given below:                                                                                                                 Work in process 1 April – 10,000 units    Direct material (100% complete)$22,000   Conversion cost (20% complete)$8,000   Balance of work in process, 1 April$26,500  Units started during April100,000 unitsUnits completed during April and    transferred out to finished goods inventory80,000 unitsWork in process , 30 April:     Direct materials (100% complete)     Conversion (30 % complete) Costs incurred during  April:    Direct material$198,000   Conversion costs:$158,400      Direct labour                        $52,800       Manufacturing overhead    $105,600 Total production costs incurred during April$356,400 Required: (where necessary round off all figures to two decimal places)Answer the following question using the weighted average method. Show all workings. a) Show a summary of the total physical flow of units.b) Calculate the equivalent units for the company.c) Calculate the equivalent unit cost for the product.d) Explain why under process costing, direct labour cost and conversion cost are added together?(2+2+4+3=11marks) Accounting Business Managerial Accounting BAO 2204 Share QuestionEmailCopy link