(Comprehensive; two departments) Pet Pens Inc. makes a backyard fencing system for pet owners in a two-stage production system. In Process One, wood is cut and assembled into 6-foot fence sections. In Process Two, the sections are pres¬ sure treated to resist the effects of weather and then coated with a wood pre¬ servative. The following production and cost data are available for May 1997 (units are 6-foot fence sections):

a. Prepare EUP schedules for both the Cutting and Pressure Processes. Use the FIFO method.

b. Determine the cost per equivalent unit for the Cutting Process assuming a FIFO method.

c. Assign costs to goods transferred and to inventory in the Cutting Process on a FIFO basis.

d. Transfer the FIFO costs to the Pressure Process. Determine the cost per equivalent unit in the Pressure Process on a modified FIFO basis.

e. Assign costs to goods transferred and to inventory in the Pressure Process on a modified FIFO basis.

f. Assuming there was no beginning or ending inventory of Finished Goods Inventory for May, what was Cost of Goods Sold for May?LO1

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UNITS Beginning WIP inventory (May 1) Complete as to material CUTTING PROCESS PRESSURE PROCESS 1,300 900 80% 0% Complete as to conversion 75% 60% Units started in May 4,800 ? Units completed in May ? 4,500 Ending WIP inventory (May 31) 1,100 ? Complete as to material 40% 0% 20% 40% Complete as to conversion COSTS Beginning WIP Inventory Transferred-in costs $ 4,725 Material $ 2,130 0 Conversion 3,175 1,674 Current costs Transferred-in costs P Material Conversion $ 8,800 4,995 12,735 13,560