Kobani Corporation produces high quality Greek yogurts that pass through three

departments - Fermentation Department (Department I), Mixing Department (DepartmentII), and Packaging Department (Department III).The production process in the Mixing Department requires the input of two main types ofingredients. One is the basic ingredients and the other one is the special ingredients. 100%of the basic ingredients are added at the beginning of the process. For the specialingredients, they are added gradually. 30% of these special ingredients are added at the beginning of the process, 50% are added midway through the process and the remainder ofthe special ingredients are added at the three-quarter way through the process.

The following information was available concerning the operation of the Mixing Departmentfor the month of April 2021.

Beginning work-in process (WIP) (1 April 2021): 2,500 units were 40% completed with

respect to conversion costs (CC). Costs pertaining to the beginning WIP as at 1 April 2021 were: Department I $10,000, Basic Ingredients $30,000, Special Ingredients $15,000 and CC$10,000.

Units started in the month were 15,000 units. Costs added to production during the month ofApril 2021 were: Department I $60,000, Basic Ingredients $188,750, Special Ingredients$203,400, and CC $154,500.

Ending WIP as at 31 April 2021 were 3,500 units and 70% completed with respect to CC.

Required:

a) Use of the weighted average (WA) process costing method, calculate

i) the units completed in April 2021.

ii) the equivalent units for the Special Ingredients.

iii) the total costs per equivalent unit.

iv) The unit cost of each (physical) unit remaining in the Work in Process at the end

of April 2021.

b) Use the first-in-first-out (FIFO) process costing method, calculate

v) the units completed in April 2021.

vi) the equivalent units for the Special Ingredients.

vii) the total costs per equivalent unit.

viii) The average unit cost of completed products transferred to the Packaging

Department during April 2021.

c) Discuss the main differences of the FIFO method as compared to the weighted average

method. In what situation will the results from the two methods produce similar result?

d) Briefly explain the reason why the answer to viii) is different from vii).