Mid-term Q1 ABC Corporation is a biotech company based in Vietri. It makes a cancer-treatment drug in a single processing department. Direct materials are added at the start of the process. Conversion costs are added evenly during the process. ABC uses the weighted average method of process costing. The following information for July 2011 is available. Equivalent Units Direct Materials Conversion Costs Physical Units Costs ($) ($) 8,500 (1) Work in process, July 1 Started during July 35,000 10,500 (1) Completed and transferred out during July 33,000 Work in process, July 31 (1) Degree of completion: direct materials,...., conversion costs,.... (2) Degree of completion: direct materials,...; conversion costs,.... Total Costs for July 2008 Work in process, beginning Direct materials $63,100 Conversion costs $45,510 Direct materials added during July 284,900 Conversion costs added during July $485,040 Required a. Fill in dot (.....) highlighted by yellow color with relevant % b. Weighted-average method Calculate cost per equivalent unit for direct materials and conversion costs, and assign total costs to units completed (and transferred out) and to units in ending work in process. b. FIFO method Calculate cost per equivalent unit for direct materials and conversion costs, and assign total costs to units completed (and transferred out) and to units in ending work in process. Q2 Which cost (absorption or variable costing) do you prefer. Why