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 Septembe 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 in c. Costs added to production during the month were direct materials, $2,575,000; direct labor, $3,471,050. Overhead was assigned using the followir Activity Rate Actual Driver Usage Inspection $150 per inspection hour 4,000 inspection hours Maintenance $750 per maintenance hour 1,600 maintenance hours Receiving $300 per receiving order 2,000 receiving orders d. At the end of the month, 122,000 units were transferred out to Welding, leaving 13,000 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 40,000 Units started (transferred in) 95,000 Total units to account for 135,000 Units accounted for: Units completed and transferred out 122,000 Units, ending work in process 13,000 V Total units accounted for 135,000 2. Calculate equivalent units of production for direct materials and conversion costs. Direct Materials Conversion Costs Equivalent Units 95,000 117,250 3. Compute unit cost. Round unit costs & final answer to three decimal places. 77.053 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. Rounc 9,411,031 X Calculate the cost of ending inventory. In your calculations, round unit costs to three decimal places. Round your final answer to the nearest de 553,185.5 x