\\Is division A produces soft drinks in standard sizes . Set out below is information* for the month of January :" Work- in- process inventory , 1 January 4, 000 units Direct materials : 100% complete* $6, 000 Conversion : 50% complete $ 12, 000 Units started during January 8, 000 units Units completed and transferred out during January 8, 000 units Work-in- process inventory , 31 January Direct materials : 100% complete* Conversion costs : 50% complete* Costs incurred during January Direct materials $ 12, 000 Conversion $ 128 , 000Cool Fizzy Ltd's production manager Phil Palm has been under pressure from senior management to improve divisional protability (which is also incidentally linked to his management performance bonus). Phil is required to attend an upcoming meeting to explain the average performance. He approaches the management accountant Rachel Murray with the following request: \"Rachel, I am under pressure to lift divisional performance. This is going to happen as the summer months approach, but I need a little time. I want you to do me a favour. Could you prepare the January monthlies using FIFO method instead of the weighted average method currently used? I know that it is just as acceptable a method, and the lift in prot it shows will give me the time I need to cany over to the protable summer season." Required: Show ALL your workings. Using the FIFO method complete the following. (i) Calculate equivalent units of direct materials and conversion for the month of January. U (ii) Calculate direct material cost and conversion cost per equivalent unit for the month of January. U (iii) Prepare an analysis of total costs showing the cost of goods completed and transferred out during January and cost oleP inventory on 31 January, (iv) Explain clearly the difference in the dollar value of the cost of goods completed and transferred out obtained above using FIFO with the dollar value calculated using the weighted averagg'. '1 (v) If you were Rachel, would you agree to Phil's request? Clean e lain your reasons for either agreeing or disagreeing 2-H- l