Problem 2 (28 points) Please read carefully Below is a process cost problem. You must calculate the equivalent units and the total costs transferred to the next department and the ending inventory costs under either the average cost method or FIFO method. (DO NOT DO BOTH - YOU WONT HAVE TIME) However, if you successfully complete the FIFO method, you will be awarded 4 bonus points. Tyrone Company produces a variety of stationery products. One product, sealing wax sticks, passes through two processes. Products first go through the Blending department, then are transferred into the molding department. In the Blending department, two ingredients, paraffin and pigment, are added at the beginning of the blending process and heated and mixed for several hours. After blending, the resulting product is sent to the Molding Department, where it is poured into molds and cooled. The following information relates to the Blending Department only for August: a. Work-in-process, August 1, had 20,000 units, 20% complete with respect to conversion costs. b. Work-in-process, August 31, had 30,000 units, 70% complete with respect to conversion costs. c. Units completed and transferred out to the Molding department totaled 500,000