FIFO Method, Physical Flow, Equivalent Units, Unit Costs, Cost Assignment Swasey Fabrication, Inc., manufactures frames for bicycles. Each frame passes through three processes: Cutting, Welding, and Painting. In September, the Cutting Department of the Tulsa, Oklahoma, plant reported the following data: a. In Cutting, all direct materials are added at the beginning of the process. b. Beginning work in process consisted of 40,000 units, 20 percent complete with respect to direct labor and overhead. Costs in beginning inventory included direct materials, $1,215,000; direct labor, $222,000; and applied overhead, $150,000. c. Costs added to production during the month were direct materials, $2,565,000; direct labor, $3,471,250. Overhead was assigned using the following information: Activity Inspection Maintenance Receiving Rate Actual Driver Usage $150 per inspection hour 4,000 inspection hours $750 per maintenance hour 1,600 maintenance hours 2,000 receiving orders $300 per receiving order d. At the end of the month, 121,000 units were transferred out to Welding, leaving 14,000 units in ending work in process, or 25 percent complete. Assume that the FIFO method is used. Required: 1. Prepare a physical flow schedule. Swasey Fabrication, Inc. Physical Flow Schedule Units to account for: Units, beginning work in process Units started (transferred in) Total units to account for 40,000 95,000 135,000 Units accounted for: Units completed and transferred out 121,000 Units, ending work in process 14,000 Total units accounted for 135,000 Feedback Check My Work 1. A physical flow schedule shows the units to account for and what happened to them. 2. Calculate equivalent units of production for direct materials and conversion costs. Direct Materials Equivalent Units 95,000 Conversion Costs 115,250 X 3. Compute unit cost. Round unit costs & final answer to three decimal places. $ 77.073 X per unit 4. Calculate the cost of goods transferred to Welding at the end of the month. In your calculations, round unit costs to three decimal places. Round your final answer to the nearest dollar. 9,510,313 X Calculate the cost of ending inventory. In your calculations, round unit costs to three decimal places. Round your final answer to the nearest dollar. 518,872 X