Part 2: The manufacturing cost of car seats As the company manufactures its own car seats, each car seat passes through the assembly department. The process-costing system at Tora Inc. has direct materials and conversion costs. Direct materials are added at the beginning of the process. Conversion costs are added evenly during the process. The company is currently using the weighted-average method of process costing. However, Mr. Yukio has also expressed concerns with the new financial controller Mr. Kane about the possibility of incurring high income taxes in the current period due to using the weighted-average method which results in lower cost of goods sold. Mr. Kane asked Mr. Yukio to consider the use of another method which leads to higher cost of goods sold and subsequently lower income taxes. Mr. Kane further explained that unlike the weighted average method, the new method separates the work done on beginning inventory from the work done in the current period. That is, only costs incurred and units produced in the current period are used to calculate cost per equivalent unit of work done in the current period. This method, as a result, yields a higher cost of units completed, higher cost of goods sold and therefore lower income taxes than the weighted average method. Mr. Yukio looked a bit confused and so requested Mr. Kane to prepare a comparative report showing the calculations of the costs assigned to units completed of car seats under the weighted- average method and the suggested method. given the following data for the assembly department for November 2020: Physical Units (Car Seats) Direct Materials Conversion Costs Work in process, November 12 5,000 $ 1.250.000 $ 402,750 Started during November 20,000 Completed during November 22,500 Work in process, November 316 ???? Total costs added during November $ $4,500,000 $ 2.337,500 Degree of completion: direct materials_2%; conversion costs, 60%. Degree of completion direct materials 2%, conversion costs, 70%. Required: Assuming you are Mr. Kane: a) Prepare a comparative report to Mr. Yukio that shows the calculations of the costs assigned to units completed of car seats under the weighted-average method and the suggested method. (20%) b) Explain the differences in both methods and why the suggested method leads to lower income taxes than the weighted-average method. (5%) c) Based on your analysis, should Mr. Yukio choose the weighted average method or the suggested method? Explain briefly. (5%)