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 41,000 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, $2,575,000; direct labor, $3,471,050, Overhead was assigned using the following information: Activity Inspection Maintenance Receiving Rate $150 per inspection hour Actual Driver Usage 4,000 inspection hours $750 per maintenance hour 1.600 maintenance hours $300 per receiving order 2,000 receiving orders 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: 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) 41.000 95.000 136.000 Total units to account for Units accounted for: Units completed and transferred out 122.000 Units, ending work in process 14.000 Total units accounted for 136.000