FIFO Method, Physical Flow, Equivalent Units, Unit Costs. Cost Assignment Swasey Fabrication, Incy 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 Cotting, 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, 51,215.000; 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, $3,471,050. Overhead was assigned using the following Information: 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 recelving orders d. At the end of the month, 121,000 units were transferred out to Welding, leaving 13,000 units in andino work in process, or 25 percent complete Assume that the FIFO method is used.