(A) J Corporation, a company that manufactures products and Mr. C is the Director. The products of this corporation go through two distinct stages before its final completion for sale. The normal and routine is that the Output from Stage 1 is immediately goes into Stage 2 as input.

You are provided with the following information for a period for Stage 2: -

Opening work-in-progress units: 12,000 units: 90% complete as to materials, 50% complete as to conversion costs. - Opening work-in-progress value: Stage 1 output: $13,440, Stage 2 materials added: $4,970 and Conversion costs: $3,120. - Costs incurred during the period: Stage 1 output: $107,790 (95,000 units), Stage 2 materials added: $44,000 and Conversion costs: $51,480. - Closing work-in-progress units: 10,000 units: 90% complete as to materials, 70% complete as to conversion costs. - The product is inspected when it is complete. 200 units of finished product were rejected during the period, in line with the normal allowance. Units rejected have no disposal value.

You are required to perform the following:

(i) Using the periodic weighted average method, you are required to find out the unit cost of production for the period in Stage 2.

(ii) From the above calculation in (i) above, you are required to prepare the Stage 2 Account for the period using the unit cost of production.

(iii) Provide your reasons as to why, and how, the Stage 2 Account would be different if there was no normal allowance for rejects. (The Stage account need not be reworked).

(iv) Describe in detail the Stage account workings, required in (i) above to calculate the unit cost, would differ if the FIFO valuation method was used instead.