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FIFO Method, Physical Flow, Equivalent Units, Unit Costs, Cost AssignmentMason, Durant, and Santos ( MDS ) is a tax services firm. The firm is located
FIFO Method, Physical Flow, Equivalent Units, Unit Costs, Cost AssignmentMason, Durant, and Santos MDS is a tax services firm. The firm is located in Oklahoma City and employs professionals and eight staff. The firm does tax work for small businesses and welltodo individuals. The following data are provided for the last fiscal year. The Mason, Durant, and Santos fiscal year runs from July through June Returns processed Returns in process, beginning of year Returns in process, end of year Cost of services sold Beginning direct materials inventory Purchases, direct materials Direct labor Overhead Administrative expenses Selling expenses $ Calculate equivalent units of production for direct materials and conversion costs. Equivalent Units Direct Materials Conversion Costs Compute unit cost. Round unit costs & final answer to three decimal places. $ per unit 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. $ 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 units, percent complete with respect to direct labor and overhead. Costs in beginning inventory included direct materials, $; direct labor, $; and applied overhead, $ Costs added to production during the month were direct materials, $; direct labor, $ Overhead was assigned using the following information: Activity Rate Actual Driver Usage Inspection $ per inspection hour inspection hours Maintenance $ per maintenance hour maintenance hours Receiving $ per receiving order receiving orders At the end of the month, units were transferred out to Welding, leaving units in ending work in process, or percent complete. Assume that the FIFO method is used.
FIFO Method, Physical Flow, Equivalent Units, Unit Costs, Cost AssignmentMason, Durant, and Santos MDS is a tax services firm. The firm is located in Oklahoma City and employs professionals and eight staff. The firm does tax work for
small businesses and welltodo individuals. The following data are provided for the last fiscal year. The Mason, Durant, and Santos fiscal year runs from July through
June
Returns processed
Returns in process, beginning of year
Returns in process, end of year
Cost of services sold
Beginning direct materials inventory
Purchases, direct materials
Direct labor
Overhead
Administrative expenses
Selling expenses
$
Calculate equivalent units of production for direct materials and conversion costs.
Equivalent Units
Direct Materials
Conversion Costs
Compute unit cost. Round unit costs & final answer to three decimal places.
$
per unit
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.
$
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 units, percent complete with respect to direct labor and overhead. Costs in beginning inventory included direct materials, $; direct labor, $; and applied overhead, $
Costs added to production during the month were direct materials, $; direct labor, $ Overhead was assigned using the following information:
Activity Rate Actual Driver Usage
Inspection $ per inspection hour inspection hours
Maintenance $ per maintenance hour maintenance hours
Receiving $ per receiving order receiving orders
At the end of the month, units were transferred out to Welding, leaving units in ending work in process, or percent complete.
Assume that the FIFO method is used.
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