3. Al Naseem Corporation uses the FIFO method in its process costing system. The following data concern the operations of the company's first processing department for the month of February: Percentage of Completion Units Direct Materials Conversion Costs Work-in-process beg, February 1 500 70% 30% Started during February 5,500 Units Completed and Transferred out 3,800 Work-in-process end, February 30 20% 60% Required: a. Explain three differences between weighted average and FIFO method. (3 marks) b. Determine the number of equivalent units of production for materials and conversion. (5 marks) 2. Faraz Corporation is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flow: [10 Marks] 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Cash receipts $350,000 $580,000 $650,000 $420,000 Total Cash disbursements $520,000 $390,000 $620,000 $340,000 The company's beginning cash balance for the upcoming fiscal year will be $80,000. The company requires a minimum cash balance of $20,000 and may borrow any amount needed from a local bank at a quarterly interest of 2%. The company may borrow any amount at the beginning of any quarter and may repays its loans, or any part of its loans, at the end of any quarter. Interest payments are due on any principal at the time it is repaid. Required: a. Prepare the company's cash budget for the upcoming fiscal year in quarters and in total (for the year)