Question 9 GC produces premium quality lubricants that pass through different departments: (1) Dept I; (2)Dept II; and (3) Dept III. The Company uses the First-In-First-Out (FIFO) process costing method.The production process in Dept II requires the input of three main types of ingredients listed asfollows:(a) Material X;(b) Material Y which is transferred from Dept I; and(c) Material Z.100% of Material X and 100% of Material Y are added at the beginning of the process.For Material Z, 40% of the required quantities are added at the beginning of the process, 45% are added mid-way (i.e., 50% of conversion done) through the process and the remainder are added at the end of the process.The following information relates to the operation of Dept II for October 2021. Beginning work-in process (BWIP) (1 October 2021): 2,000 kg were 20% completed withrespect to conversion costs (CC). Units started in the month were 240,000 kg. Ending WIP (EWIP) as at 31 October 2021 were 2,800 kg and 60% completed withrespect to CC. Assume there is no spoilage or loss.Required:Calculate the equivalent units of production for GC in Dept II for the month of October 2021.AccountingBusinessManagerial AccountingACC 203
