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, $$223,000$; and applied overhead, $$150,000.$

c$.$ Costs added to production during the month were direct materials, $$2,575,000$; direct labor,

$$3,471,050.$ Overhead was assigned using the following information:

d$.$ At the end of the month, $122,000$ 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:

Prepare a physical flow schedule.

Swasey Fabrication, Inc.

Physical Flow Schedule Calculate equivalent units of production for direct materials and conversion costs.

Compute unit cost. Round unit costs & final answer to three decimal places.

$

$x$ per unit

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.

$$

Calculate the cost of ending inventory. In your calculations, round unit costs to three

decimal places. Round your final answer to the nearest dollar.

$