Alfin Ltd. produces a weed killer with fertilizer for lawns that passes through four processes; blending, drying, mixing and bagging. The weighted average method is used to account for the costs of production. Two chemical herbicides, X and Y, are added at the beginning of the blending process and allowed to cook for six to seven hours. After blending, the resulting product is sent to the Drying Department, where it is dried under heat lamps for 24 hours. After drying, the granulated product is sent to mixing where a fertilizer is mixed with the granulated herbicides. Finally, in bagging the product is placed in 25 - pound bags. The following information relates to the blending process for the month of June.

aWork in process, June 1, 30,000 pounds, 60 percent complete with respect to

conversion costs. Costs associated with partially completed units are as follows;

$

Direct Material X1,500

Direct Material Y7,500

Direct labour750

Overhead2,250

bWork in process, June 30, 45,000 pounds, 70% complete with respect to conversion

costs.

cUnits completed and transferred out: 750,000 pounds. Costs added during the

month are as follows:

$

Direct material X38,250

Direct material Y191,250

Direct labour19,125

Overhead57,375

Required:

(i) Prepare the following:

(a)A physical flow schedule(2 marks)

(b)A schedule of equivalent units with categories for Direct material X, Direct material Yand conversion costs(3 marks)

(c)Cost per equivalent unit for each category(2 marks)

(d)Cost of goods transferred out and ending work in progress(2 marks)

(e)A cost reconciliation(2 marks)

(ii)Under the weighted average method, how are prior -period costs and output treated?

How are they treated under the FIFO method?(4 marks)