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:

In Cutting, all direct materials are added at the beginning of the process.

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, $$1,215,000$; direct labor, $$222,000$; and applied overhead, $$150,000.$

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

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

At the end of the month, $121,000$ 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:

Question Content Area

$1.$ Prepare a physical flow schedule.

blank

Swasey Fabrication, Inc.

Physical Flow Schedule

Units to account for: blank

Units, beginning work in process

Units, beginning work in process

$40,000$

Units started $($transferred in$)$

Units started $($transferred in$)$

$95,000$

Total units to account for fill in the blank b$042$f$3073$f$9$bf$86\_5$

$135,000$

Units accounted for: blank

Units completed and transferred out

Units completed and transferred out

$121,000$

Units, ending work in process

Units, ending work in process

$14,000$

Total units accounted for fill in the blank b$042$f$3073$f$9$bf$86\_10$

$135,000$

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Question Content Area

$2.$ Calculate equivalent units of production for direct materials and conversion costs.

Equivalent Units

Direct Materials fill in the blank $7977$dc$0$c$5$f$9$efb$3\_1$

Conversion Costs fill in the blank $7977$dc$0$c$5$f$9$efb$3\_2$

$3.$ Compute unit cost. Round unit costs & final answer to three decimal places.

$fill in the blank $7977$dc$0$c$5$f$9$efb$3\_3$

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.

$fill in the blank $7977$dc$0$c$5$f$9$efb$3\_4$

Calculate the cost of ending inventory. In your calculations, round unit costs to three decimal places. Round your final answer to the nearest dollar.

$fill in the blank $7977$dc$0$c$5$f$9$efb$3\_5$Calculate equivalent units of production for direct materials and conversion costs.

$\backslash$table$[[,$Equivalent Units$],[$Direct Materials,$x$