Showing all workings, use weighted average method and FIFO to complete the following:

(iv) Explain clearly the difference in dollar value of the costs of goods completed and transferred out obtained above using FIFO with the dollar value calculated using the weighted average.

No need to follow textbook format for part (iii). You can use your own format for answering it.

Cool Fizzy for the month of January: Ltd's division A produces soft drinks in standard sizes. Set out below is information 4,000 units $6,000 $12,000 8,000 units 8,000 units Work-in-process inventory, 1 January Direct materials: 100% complete Conversion: 50% complete Units started during January Units completed and transferred out during January Work-in-process inventory, 31 January Direct materials: 100% complete Conversion costs: 50% complete Costs incurred during January Direct materials Conversion $12,000 128,000 Cool Fizzy Ltd's production manager Phil Palm has been under pressure from senior management to improve divisional profitability (which is also incidentally linked to his management performance bonus). Phil is required to attend an upcoming meeting to explain the average performance. He approaches the management accountant Rachel Murray with the following request: "Rachel, I am under pressure to lift divisional performance. This is going to happen as the summer months approach, but I need a little time. I want you to do me a favour Could you prepare the January monthlies using FIFO method instead of the weighted average method currently used? I know that it is just as acceptable a method, and the lift in profit it shows will give me the time I need to carry over to the profitable summer season." Calculate equivalent units of direct materials and conversion for the month of January. 4 marks) (i) (i) Calculate direct material cost and conversion cost per equivalent unit for the month of 8 marks) January (ii) Prepare an analysis of total costs showing the cost of goods completed and transferred out during January and cost of WIP inventory on 31 January, as per Exhibit 5.4 (p.192) (4 marks) of the textbook. ()If you were Rachel, would you agree to Phil's request? Clearly explain your reasons for either agreeing or disagreeing. (Hint: Refer to the Appendix to Chapter 1 of the (6 marks) textbook). Cool Fizzy for the month of January: Ltd's division A produces soft drinks in standard sizes. Set out below is information 4,000 units $6,000 $12,000 8,000 units 8,000 units Work-in-process inventory, 1 January Direct materials: 100% complete Conversion: 50% complete Units started during January Units completed and transferred out during January Work-in-process inventory, 31 January Direct materials: 100% complete Conversion costs: 50% complete Costs incurred during January Direct materials Conversion $12,000 128,000 Cool Fizzy Ltd's production manager Phil Palm has been under pressure from senior management to improve divisional profitability (which is also incidentally linked to his management performance bonus). Phil is required to attend an upcoming meeting to explain the average performance. He approaches the management accountant Rachel Murray with the following request: "Rachel, I am under pressure to lift divisional performance. This is going to happen as the summer months approach, but I need a little time. I want you to do me a favour Could you prepare the January monthlies using FIFO method instead of the weighted average method currently used? I know that it is just as acceptable a method, and the lift in profit it shows will give me the time I need to carry over to the profitable summer season." Calculate equivalent units of direct materials and conversion for the month of January. 4 marks) (i) (i) Calculate direct material cost and conversion cost per equivalent unit for the month of 8 marks) January (ii) Prepare an analysis of total costs showing the cost of goods completed and transferred out during January and cost of WIP inventory on 31 January, as per Exhibit 5.4 (p.192) (4 marks) of the textbook. ()If you were Rachel, would you agree to Phil's request? Clearly explain your reasons for either agreeing or disagreeing. (Hint: Refer to the Appendix to Chapter 1 of the (6 marks) textbook)