Raphael's Refining uses a weighted average process costing system. For a particular period, its opening work-in-process (WIP) inventory consisted of 100 items (60 percent complete as to conversion costs) whose costs were $1600 made up of material $300 and conversion cost $1300. During the month, 1000 items were started and 950 were completed. Ending inventory of WIP was one-third complete. There was no spoilage. Costs placed in process during the month were materials $1600 and conversion costs $13 700.

Required:

1. What is the amount of cost that would be allocated to goods completed and transferred-out in the period? Show calculations. (2 marks)
2. Why is there a need for computing equivalent units of production in a process costing system? Explain. (1 mark)