Alden Company uses the FIFO method to account for the costs of production. For crushing, the first processing department, the following equivalent units schedule has been prepared:

The cost of beginning work in process was direct materials, $30,000; conversion costs, $25,000.
Required:
1. Determine the cost of ending work in process and the cost of goods transferred out.
2. Prepare a physical flow schedule.

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Direct Materials Conversion Costs Units started and completed 22,000 22,000 Units, beginning work in process: 10,000 X 0% 10,000 40% 4,000 Units, ending work in process: 6,000 x 100% 6,000 6,000 75% 4,500 Equivalent units of output 28,000 30,500 The cost per equivalent unit for the period was as follows: Direct materials $3.00 Conversion costs 5.00 Total $8.00