lll'tuestion 2 { 12 -|- E -|- 10 = 23 marks} Premier Plastics is a manufacturer of plastic buckets. All direct materials are added at the beginning of production and conversion costs are incurred evenly thmughout production. Conversion was 243% complete for the EQDEIG units in workinprogress on the 15' of May and 40% eomplete for the ending workinprogress on the 315t of May. Premier Plastics uses the weighted average method of process posting. The following data is a summaryr of the costs for May: kainprogress, 1 May 23,130!) units: Direct material ............................................................................................ $841Dt} Conversion costs ........................................................................................... EID Balance in workinprogress. 1 May ................................................................ m Units started during May ........................................................................................ 2031M!) Units completed during May and transferred out to nished goods inventory ..................... 1ED,G{J{II Costs incurred during May Direct materials ....................................................................................... 554301011} Conversion costs ..................................................................................... $3131 Required: a} For each cost element, calculate equivalent units of work done in May m the cost per equivalent unit. Show all workings including the physical units. {12 marks} Question 2 ( continued ) b ) Prepare a set of journal entries for all May transactions affecting the work in- progress account ( 6 marks )( ) Sar ah the manager of Premier Plastics relies on the process costing system to aid her in pricing and product mix decisions and to provide feedback on performance . She is considering changing from the weighted average method to the FIFO method Given Sarah's requirements outline the advantages and disadvantages of changing from a weighted average method to a FIFO method ( 10 marks )