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 process and conversion costs are incurred uniformly throughout the process. The companys production quantity schedule for January is as follow:

Unit (tubs)

Work in process on 1 January (55% complete as to conversion) 8,000

Units started during January 11,000

Total units to account for

19,000

Units from beginning work in process, which were completed and

transferred out during January 8,000

Unit started and completed in January 6,000

Work in process on 31 January (35% complete as to conversion)

Total units to account for

Required:

a) Calculate each of the following amounts:

i. Equivalent units of direct material during January. Use the FIFO method. (1.5 marks)

ii. Equivalent units of conversion during January. Use the FIFO method. (1.5 marks)

iii. Equivalent units of direct material during January. Use the weighted average method. (1 mark)

iv. Equivalent units of conversion during January. Use the weighted average method. (1 mark)

pls mention how converion rate 45% come as it is 55% in statement

and pls make sm changes in this app as we are not able to submit feedback it is not working in case we need clarification pls pls humble request tell why u take 45% not 55% in start