1. Physical unit analysis: comp. Materials Conversion WIP opening balance Units Started Total Units to be account for Units completed & transferred out WIP closing balance Total Units accounted for Total Equivalent Units 3. Unit cost calculation: DM Conversion TOTAL WIP opening balance Current costs Total Costs to account for Cost per Equivalent Unit 4. Cost allocation: Units completed & transferred out WIP closing balance Total costs accounted for Question 2 [5 marks] Sourceman Lid has recently expanded its business to offer custom-designed furniture and also manufactures standardized furniture items. They have recently implemented a cost accounting system to accurately allocate costs to their different product lines. The company's management wants to evaluate two costing systems: job order costing and process costing, to determine which one would be more suitable for their operations. The organization employed you as a management consultant to analyse and compare the two different costing systems, considering the company's manufacturing processes and products, to provide recommendations for Sourceman Ltd. Required Explain the nature of job order costing and how it differs from process costing. [5 marks]