FIFO Method, Equivalent Units, Unit Cost, Multiple Departments Brown Company has a product that passes through two processes: Grinding and Polishing. During December, the Grinding Department transferred 20,000 units to the Polishing Department. The cost of the units transferred into the second department was $40,000. Direct materials are added uniformly in the second process. Units are measured the same way in both departments, The second department (Polishing) had the following physical flow schedule for December: Units to account for: Units, beginning work in process 4,000 (40% complete) Units started ? Total units to account for Units accounted for Units, ending work in process 8,000 (50% complete) Units completed Units accounted for Costs in beginning work in process for the Polishing Department were direct materials, $5,000; conversion costs, $6,000; and transferred in, $8,000. Costs added during the month: direct materials, $32,000; conversion costs, $50,000, and transferred in, $40,000 Assume the company uses the FIFO method. Required: Brown Company Schedule of Equivalent Units For the month of December Direct Materials Conversion Costs Transferred In Units started and completed 16,000 X 16,000 X 16,000 x Units to complete in BWIP: 8,000 X X 25 X % 4,000 X 4,000 X Units in EWIP: 8,000 X 50 X % 8,000 8,000 x 100 X % 20,000 x 20,000 X Total equivalent units 20,000 X 20,000 x 24,000 X Feedback Check My Work The FIFO method excludes the equivalent output and costs in BWIP when the current-period unit cost is calculated. FIFO follo costing principle. When calculating costs of goods transferred out, two categories of completed units are needed: Units comp and Units started and completed. b. Compute the unit cost for the month of December. Round intermediate calculations and your final answer to the neare 6.65 X per equivalent unit