Question 3 (32 marks ) The production manager of Coco Puffy Duffs presented the following production data . She stated that , beginning inventory of work -in-progress (WIP ) is 1,200,000 coco puffs which are 40 % complete . Beginning WIP raw material inventory costs are $2,280,000 . While , beginning WIP inventory of conversion costs are $2,400,000 He further stated that , all raw materials for the coco puffs are added at the beginning of production process . Conversion takes place continuously throughout It the process . However , during the period , 3,000,000 coco puffs were started ; and raw materials added during the period cost $3,123,000 . Conversion costs for the period are $33,165,000 . Ending WIP inventory is 600,000 coco puffs which are 30 % complete Required : a) Using the Weighted average method , determine the equivalent units of production for both materials and conversion cost (hint : number of units ). (7 marks ) b) Using the Weighted average method , determine the cost per unit for materials and conversion costs (9 marks ) c) Using the first -in, first -out (FIFO ) method , determine the equivalent units of production for both materials and conversion cost (hint : number of units ). (3 marks ) d) Using the first -in, first -out (FIFO ) method , determine the cost per unit for material and conversion costs . (6 marks ) e) Prepare the process account for both methods (7 marks ) Question 4 (22 marks ) The management of a company have been using a policy of marginal costing whereby the variable costs of producing counter stools are charged to cost units , and fixed costs of the period are written off in full against the aggregate contribution. . After assessing the drawbacks of marginal costing , it was advised to consider costing items under the absorption costing approach . The following data was provided for the years December 31, 2019 and December 31, 2020 2019 2020 Selling Price per unit 100.00 100.00 Direct Labour Cost per unit 7.50 7.50 Direct Material per unit 12.50 12.50 Direct Expense per unit 5.00 5.00 Variable Overheads per unit 6.50 6.50 Fixed Overheads (Actual 850,000.00 650,000.00 Variable Selling Cost per unit 6.00 6.00 Actual Production 80,000.00 80,000.00 Actual Sales 65,000.00 75,000.00 On January 1, 2019 , the company had 5,000 counter stools valued at a cost of $175,000 . For both periods the company also had budgeted fixed overhead to be $315,000 and budgeted production of 90,000 counter stools ; and overheads are currently absorbed on a per unit basis . Required : a) Prepare an income statement using marginal costing as well as absorption costing for the year ended December 31, 2019 (4 marks ) b) Prepare an income statement using marginal as well as absorption costing for the year ended December 31, 2020 (15 marks ) c) Prepare reconciliation between both profits for both years (3 marks )