Facemasks Ltd. uses the First-In, First-Out (FIFO) costing method to account for the production of reusable...

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Facemasks Ltd. uses the First-In, First-Out (FIFO) costing method to account for the production of reusable facemasks which passes through the cutting and stitching departments. In the stitching department, all materials are added at the beginning of the process and all other manufacturing inputs are added uniformly. Beginning work-in-process on 1st December had 2,000,000 units which were 50% complete with respect to conversion costs and the associated costs were $1,800,000 for direct materials and $4,200,000 for conversion costs. On 31st December, ending work-in-process had 1,000,000 units that were 40% complete with respect to conversion costs. During December, 4,000,000 units were completed and transferred out and the direct materials cost of $4,500,000 and conversion cost of $8,000,000 were incurred during December. Required: 1. Prepare a physical flow schedule. 2. Prepare a schedule of equivalent units. 3. Calculate the cost per equivalent unit (round amounts to two decimal places). 4. Calculate the cost of goods completed and transferred out and the cost of ending work-in- process, and total costs accounted for during December. 5. Facemasks Ltd. is considering adopting the weighted average process costing method instead of the FIFO method. Should Facemasks Ltd. go ahead with this new adoption, or should it continue using its existing FIFO process costing approach? Explain and justify your recommendation. (4+25+15+ 6+1 -10 manda) Facemasks Ltd. uses the First-In, First-Out (FIFO) costing method to account for the production of reusable facemasks which passes through the cutting and stitching departments. In the stitching department, all materials are added at the beginning of the process and all other manufacturing inputs are added uniformly. Beginning work-in-process on 1st December had 2,000,000 units which were 50% complete with respect to conversion costs and the associated costs were $1,800,000 for direct materials and $4,200,000 for conversion costs. On 31st December, ending work-in-process had 1,000,000 units that were 40% complete with respect to conversion costs. During December, 4,000,000 units were completed and transferred out and the direct materials cost of $4,500,000 and conversion cost of $8,000,000 were incurred during December. Required: 1. Prepare a physical flow schedule. 2. Prepare a schedule of equivalent units. 3. Calculate the cost per equivalent unit (round amounts to two decimal places). 4. Calculate the cost of goods completed and transferred out and the cost of ending work-in- process, and total costs accounted for during December. 5. Facemasks Ltd. is considering adopting the weighted average process costing method instead of the FIFO method. Should Facemasks Ltd. go ahead with this new adoption, or should it continue using its existing FIFO process costing approach? Explain and justify your recommendation. (4+25+15+ 6+1 -10 manda)

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