(a) Using the weighted average method, for the month of April,

(i) determine the total cost of units transferred out of the department; (3 marks)

(ii) determine the total cost of ending work-in-process inventory; and (2 marks)

(iii) prepare a cost reconciliation report for each process and in total. (3 marks)

(b) Paul reported to senior management that he had managed the processing department more effectively than Peter, his predecessor. To check whether Pauls statement is correct, senior management told you to check the date. Use the first-in-first-out method to:

(i) determine the total cost of units transferred out of the department; and (4 marks)

(ii) determine the total cost of ending work-in-process inventory. (2 marks)

(iii) justify (or decline) Pauls claim. (8 marks)

(c) Explain the need for equivalent units and why separate equivalent-unit totals are calculated for direct materials and conversion cost. (3 marks) [Total for Question 2: 25 marks]

Question 2 (25 marks) The following data concern the operations of Siu Lek Yuen Inc.'s processing department for April 2022. Physical Percent Complete Units Materials Conversion Cost Work in process, 1 April 10,000 80% 30% Units started into production during April 250,000 Units completed during April and transferred to the next department 2,440,000 Work in process, 30 April 70,000 60% 40% Paul succeeded Peter as the manager of the processing department after the latter retired in end of March 2022. According to the company's records, the conversion cost in beginning work in process inventory was $27,820 and $81,240 for materials and conversion costs respectively. Additional materials of $3,720,000 and conversion cost of $5,916,000 were incurred in the department during the month. Required: (Round your computation to two decimal places, where applicable)