QUESTION 3 (i) There are so many costing methods that a business could adopt. However, choosing a method depends mainly on the type of operation process, products produced and services rendered. Discuss the circumstances under which process costing is appropriate, giving distinctions from job costing. (5 marks) (ii) In manufacturing its products, a company operates three Processes. Process two receives units from Process one and transfers them to Process three after carrying out work on the units. The relevant data for the month of June are as follows: Process 1 Process 2 Process 3 Opening WIP (Units) 1,000 Material cost in Opening WIP (60%) (GHS) 12,000 Conversion costs in Opening WIP (40%) (GHS) 2,000 Units introduced / transferred into the process 14,000 10,000 9,000 Material cost added during the period (GHS) 70,000 36,000 80,000 Labor cost added during the period (GHS) 40,000 50,000 60,000 Production Overhead added during the period (GHS) 8,000 7,000 10,000 Output completed and transferred 10,000 units 9,000 units 10,000 units Closing WIP (50% complete) 4,000 units 1,000 units Materials are input into process one at the start of the process but added materials are introduced into process two and three at the end of the process