Question 6 (Total 25 marks) In the moulding department of Moulds Company, direct materials are added at the beginning of the process and all other manufacturing inputs are applied uniformly. Moulds company uses the weighted average costing method and for the month of January the moulding department's beginning work-in-process had 5,000 units that were 60% complete with respect to conversion costs and the costs related to this work were $220,000 for direct materials and $610,000 for conversion. During January, 80,000 units were completed and transferred out and ending work-in-process had 2,000 units that was 25% complete with respect to conversion costs. The costs incurred during January were $600,000 for direct materials and $1,000,000 for conversion. Required: 1. Prepare a physical flow schedule. 2. Prepare a schedule of equivalent units. 3. Calculate the cost per equivalent unit. 4. Calculate the cost of goods completed and transferred out and the cost of ending work-in- process, and total costs accounted for during January. 5. Suppose the cost of manufacturing inputs vary greatly from period to period. Should Moulds Company continue to use the weighted average costing method to calculate unit costs, or should it consider adopting the alternative, FIFO method? Explain and justify your answer. (8+6+5.5 +3.5 + 2 = 25 marks)