Refer to the data in Problem 6.31. Assume that the FIFO method is used.
In Exercise
Swasey Fabrication, Inc., manufactures frames for bicycles. Each frame passes through three processes: Cutting, Welding, and Painting. In September, the Cutting Department of the Tulsa, Oklahoma, plant reported the following data:
a. In Cutting, all direct materials are added at the beginning of the process.
b. Beginning work in process consisted of 40,500 units, 20 percent complete with respect to direct labor and overhead. Costs in beginning inventory included direct materials, $1,215,000; direct labor, $222,600; and applied overhead, $150,000.
c. Costs added to production during the month were direct materials, $2,565,000; direct labor, $3,471,150. Overhead was assigned using the following information:

d. At the end of the month, 121,500 units were transferred out to Welding, leaving 13,500 units in ending work in process, or 25 percent complete.
Required:
1. Calculate equivalent units of production for direct materials and conversion costs.
2. Compute unit cost. Round to three decimal places.
3. Calculate the cost of goods transferred to Painting at the end of the month. Calculate the cost of ending inventory.

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Activity Rate Inspection Maintenance Receiving $150 per inspection hour $750 per maintenance hour S300 per receiving order Actual Driver Usage 4,000 inspection hours 1,600 maintenance hours 2,000 receiving orders