Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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,

image text in transcribed
image text in transcribed
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, $2,565,000; 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 recelving 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 Units started (transferred in) Total units to account for Units accounted for: Units completed and transferred out Units, ending work in process Total units accounted for ID Units, beginning work in process Units started (transferred in) Total units to account for Units accounted for: Units completed and transferred out Units, ending work in process Total units accounted for Feedback 2. Calculate equivalent units of production for direct materials and conversion costs Equivalent Units Direct Materials Conversion Costs 3. Compute unit cost. Round unit costs & final answer to three decimal places. 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. Calculate the cost of ending Inventory. In your calculations, round unit costs to three decimal places. Round your final answer to the nearest dollar. Feedback

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: John Wild, Ken Shaw, Barbara Chiappetta

8th Edition

1264111924, 9781264111923

More Books

Students also viewed these Accounting questions

Question

How is the Arms ratio computed? What is it designed to capture?

Answered: 1 week ago