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, $$2,575,000$; direct labor, $$3,471,250.$ Overhead was assigned using the following information:

Activity

Rate

Actual Driver Usage

$\backslash$table$[[$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, $121,000$ 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:

Prepare a physical flow schedule.

Swasey Fabrication, Inc.

Physical Flow Schedule

Units to account for:

Units, beginning work in process $440,000$