Dream Limited manufactures ice cream. The company employs a process costing system for its manufacturing operations. All direct materials are added at the beginning of the processand conversion costs are incurred uniformly throughout the process. The company'sproduction quantity schedule for January is as follow:

Work in process on 1 January (55% completed as to conversion) = 8000 (unit in tubs )

Units started during January =11000 (unit in tubs)

Total units to account for =19000

Units from beginning work in process, which were completed and transferred out during January =8000 (unit in tubs)

Unit started and completed in January = 6000(unit in tubs)

Work in process on 31 January (35% completed as to conversion) =5000(unit in tubs)

Total units to account for = 19000

Required:

a) Calculate each of the following amounts:

1. Equivalent units of direct material during January. Use the FIFO method.(1.5
2. marks)
3. Equivalent units of conversion during January. Use the FIFO method.(1.5 marks)
4. Equivalent units of direct material during January. Use the weighted average method.(1 mark)
5. Equivalent units of conversion during January. Use the weighted average method.
6. (1 mark)

b) Explain the major difference between weighted average and FIFO method in process costing systems(2 marks).