#D: Process Costing using First-in-First-Out (FIFO) Mr. Lumber Company processes rocks for manufacturing construction materials. The company employs a process costing system for its manufacturing operations. All direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. So, Work-in-Process Inventory is only 50% complete as to conversion cost. This is the company's production schedule for December: Tone of Pulp Work-In-Process Inventory, December 1 3,000 started during December 14,000 Unite to account for 17,000 Units from beginning Work-In-Process, which were completed and transferred out during December 3,000 started and completed during December 8,400 Work-In-Process Inventory, December 31 5,800 Total units accounted for 17,000 The following cost data are available: Work-In-Process Inventory, December 1 Direct materials $ 47 640 conversion 116 202 Costs Incurred during December Direct material 217.560 Conversion 255.270 Required: To earn full or partial marks, show all calculations in good form. 1. Calculate the equivalent units of direct materials and conversion during December. Use the First-in- First-Out (FIFO) method. 2. Calculate the cost per equivalent unit for both direct materials and conversion during December. Use the First-in-First-Out (FIFO) method. 3. Compute the cost of the ending Work-in-Process. 4. As a manager, discuss the circumstances when FIFO may be most useful in product costing. Support your response with appropriate reference. Use APA