44. (Comprehensive; two departments) Safe-N-Sound makes a backyard fencing system for pet owners in a two-stage production system. In Process 1, wood is cut and assembled into six-foot fence sections. In Process 2, the sections are pressure treated to resist the effects of weather and then coated with a wood preservative. The following production and cost data are available for March 2001 (units are six-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 cost per EUP on a modified FIFO basis. (See footnote 8, page 233.)

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 March, what was Cost of Goods Sold for March?

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Units Beginning WIP Inventory (March 1) Complete as to material Cutting Process Pressure Process 1,300 900 80% 0% Complete as to conversion 75% 60% Units started in March 4,800 ? Units completed in March ? 4,500 Ending WIP Inventory (March 31) 1,100 ? Complete as to material 40% 0% Complete as to conversion 20% 40% Costs Beginning WIP Inventory Transferred-in Material Conversion Current Transferred-in Material Conversion $ 4,725 $ 2,130 3,175 0 $ 8,800 12,735 1,674 $ 69 ? 4,995 13,560