Refer to the information in Exercise 5- 21. Suppose that Alpaca uses the FIFO method instead of the weighted- average method in all of its departments.

1. Calculate equivalent units of direct materials and conversion costs.

2. What issues should the manager focus on when reviewing the equivalent units calculation?

3. Summarize total costs to account for, and calculate the cost per equivalent unit for direct materials and conversion costs.

4. Assign total costs to units completed (and transferred out) and to units in ending work in process.

5. If you did Exercise 5- 21, should Alpaca’s managers choose the weighted- average method or the FIFO method? Explain briefly.