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Q3. Run Yu Sdn Bhd manufactures a product for which materials are added at the beginning of the manufacturing process. A review of the company's inventory and cost records for the most recently completed year revealed the following information: Units Materials Conversion Work in process, Jan. 1 (80% complete with respect to conversion costs) 100,000 RM100,000 RM157,500 Units started into production 500,000 Costs added during the year: Materials RM650,000 Conversion RM997,500 Units completed during the year 450,000 The company uses the weighted average cost method in its process costing system. The ending inventory is 50% complete with respect to conversion costs. Required: (a) Compute the equivalent units of production and the cost per equivalent units for materials and for conversion costs. (16 marks) (b) Calculate the cost transferred to finished goods. (4 marks) Determine the amount of cost that should be assigned to the ending work in process inventory. (4 marks) (d) Distinguish between the area(s) of authority or control of a cost center manager, a profit center manager and an investment center manager. (3 marks) (e) Define decentralization and discuss FIVE (5) benefits of decentralization. (7 marks) Explain the similarities for job-order costing and process costing. (3 marks) Define a spending variance. Explain under what circumstances a spending variance will be favorable and under what circumstances will a spending variance be unfavorable. (3 marks) [Total: 40 marks)

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