Baden Company uses FIFO to account for the costs of production. For Grinding, the first processing department, the following equivalent unit schedule has been prepared:

The cost of beginning work in process was materials, $20,000; conversion costs, $40,000.
Required:
1. Determine the cost of ending work in process and the cost of goods transferred out.
2. Prepare a physical flow schedule.

Transcribed Image Text:

Units started and completed Units, beginning work in process: Materials Conversion Cost 11,000 11,000 5,000 0% 5,000 X 40% 2,000 Units, ending work in process: 4,000 x 100% 4,000 4,000 x 75% 3,000 Equivalent units of output 15,000 16,000 The cost per equivalent unit for the period was as follows: Materials $3.00 Conversion cost 5.00 Total $8.00