Question 3 (Total 25 marks) In the stitching department of Jumpers Ltd. direct materials are added at the beginning of the process and all other manufacturing inputs are applied uniformly. Jumpers Ltd. uses the First in, First Out (FIFO) costing method and for the month of May the stitching department's beginning work-in-process had 40,000 units that were 80% complete with respect to conversion costs and the costs related to this work were $160,000 for direct materials and $200,000 for conversion. During May, 200,000 units were completed and transferred out and ending work-in-process had 20,000 units that was 35% complete with respect to conversion costs. The costs incurred during May were $600,000 for direct materials and $700,000 for conversion. 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 where appropriate). 4. Calculate the cost of goods completed and transferred out and the cost of ending work-in- process, and total costs accounted for during May. 5. Should Jumpers Ltd. continue to use the FIFO costing method if the cost of manufacturing inputs varies greatly from period to period, or should it consider adopting the alternative costing method? Explain and justify your answer. (8+7+4.5+ 3.5+2=25 marks) Start your answer here: