Tolliver Company is a manufacturer that uses FIFO to account for its production costs. The product Tolliver makes passes through two processes. Tolliver’s controller prepared the following equivalent-unit schedule:

Conversion Materials Cost Units started and completed 8,000 8,000 Units in beginning work in process < Fraction to complete:

2,000 X 0% 0 =

2,000 x 50% 1,000 Unit in ending work in process X Fraction complete:

4,000 x 100% 4,000 —

4,000 * 25% = 1,000 Equivalent units of output 12,000 10,000 Costs in beginning work in process were materials, $6,000; conversion costs, $24,000.

Manufacturing costs incurred during October were materials, $72,000; conversion costs, $96,000.

Required:
1. Prepare a physical flow schedule for October.
2. Compute the cost per equivalent unit for October.
3. Determine the cost of ending work in process and the cost of goods transferred out.