- QUESTION SEVEN. The following information relates to process 2 of a two stage production for March 2013 Material input from process 195, 000 units costing K200,000 Material added K44,000 Conversion costs K52, 000 Number of units scrapped 2,000 units in line with the normal allowance. Opening work in progress - 12,000 units : Complete as to: cost Material from process 1 - 100% -- K14.000 Material added 90% K 5,000 Conversion cost 50% K 3.000 10.000 units Closing work in progress Complete as to: Material from process 1 Material added Conversion costs 100% 80% 60% Scrapped units have no sales value: Required: A) Based on weighted average cost method of work in progress valuation, prepare; (0) Statement of equivalent units (4% marks) (i) Statement of cost per equivalent unit (3 marks) (iii) Statement of valuation (3 marks) Process 2 account (5% marks) B) State two reasons why it is important for a business to determine the cost of its products (4marks) [Total: 20 marks]