Question $2(24$ marks$)$

Delco Enterprise currently uses a process costing system to ascertain costs to produce canned soup. At the beginning of the period there were $20,000$ units as work$-$in$-$progress which was $30\%$ complete as it relates to material and $70\%$ complete for conversion cost. During the month of May $2020,$ the cost accountant computed the overhead absorption rate using the traditional approach and wants to establish its relationship to the process costing system.

Budgeted overheads for the period were $$3,500,000$ and the labour hours were estimated to be $70,000$ hours. The actual activity level was $30,000$ hours above the estimated and the actual overheads are the same as budgeted. The actual DLH rate is $$85.$ For the period, the entity bought $140,000$ units of material valuing $$$43$ each. The units purchased were the only materials added for the entire period.

The material cost for the opening work$-$in$-$progress was $$550,000$ for materials and $$1,205,000$ for conversion cost. At the end of the period work in progress was $35,000$ units. The materials are $60\%$ completed while conversion cost is $40\%$ completed.

Required:

$($a$)$ Determine the equivalent unit costs based on the weighted average method. $(12$ marks$)$

$($b$)$ Determine the value of the ending work$-$in$--$progress and completed goods using weighted average method. $(3$ marks$)$

$($c$)$ Determine the equivalent unit costs based on the first$-$in$-$tirst$-$out method. $(6$ marks$)$

$($d$)$ Determine the value of the ending working progress and completed goods using weighted average method. $(3$ marks$)$