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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,

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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 40,500 units, 20 percent complete with respect to direct labor and overhead. Costs in beginning inventory included direct materials, $1,215,000; direct labor, $222,600; and applied overhead, $150,000. c. Costs added to production during the month were direct materials, $2,565,000; direct labor, $3,471,150. 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 d. At the end of the month, 121,500 units were transferred out to Welding, leaving 13,500 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 40.500 Units started (transferred in 94.500 Check My Work 1 more Check My Work uses remaining eBook Calculator Units completed and transferred out Print Item Units, ending work in process Total units accounted for Feedback Check My Work 1. A physical flow schedule shows the units to account for and what happened to 2. Calculate equivalent units of production for direct materials and Equivalent Units Direct Materials 94,500 Conversion Costs 116,775 3. Compute unit cost. In your calculations, round unit costs to three decimal places. $ 78.00 X per unit answer to the nearest cent. ations, round unit costs to three decimal places. Round your final answer to 4. Calculate the cost of goods transferred to Painting at the end of the month. the nearest dollar. $ 9,477,000 X Calculate the cost of ending inventory. In your calculations, round unit costs to three $ 536,115 es. Round your final answer to the nearest dollar

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