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JabriLtdmanufacturescarseatsinitsNewlandsplant.EachcarseatpassesthroughtheAssemblyDepartmentandtheTestingDepartment.ThisproblemfocusesontheAssemblyDepartment.Theprocess-costingsystematJabriLtdhasasingledirectcostcategory(directmaterials)andasingleindirectcostcategory(conversioncosts).Directmaterialsareaddedatthebeginningoftheprocess.Conversioncostsareaddedevenlyduringtheprocess.WhentheAssemblyDepartmentfinishesworkoneachcarseat,itisimmediatelytransferredtoTesting.

JabriLtdusestheweighted-averagemethodofprocesscosting.DatafortheAssemblyDepartmentforOctober2023are:

PhysicalUnits DirectMaterials Conversion

Workinprocess,1October Degreeofcompletion:conversioncosts,60%	5,000	$1,250,000.00	$ 402,750.00
StartedduringOctober2022	20,000
CompletedduringOctober2022	22,500
Workinprocess,31October Degreeofcompletion:conversioncosts,70%	2,500
TotalcostsaddedduringOctober2022		$4,500,000.00	$2,337,500.00

Required:

1. Calculateequivalentunitsofdirectmaterialsandconversioncosts.[2marks]
2. Summarisetotalcoststoaccountfor[2marks]
3. Calculatethecostperequivalentunitfordirectmaterialsandconversioncosts.[4marks]
4. Assigntotalcoststounitscompletedandtounitsinendingworkinprocess.[4+4marks]
5. Explainwhythecompanywouldbeusingaprocess-costingsystem,ratherthanajob-costingsystem.[10marks]

####Formatofcalculations[4marks]

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