FIFO Method, Valuation of Goods Transferred Out and Ending Work in Process K-Briggs Company uses the FIFO method to account for the costs of production. For Crushing, the first processing department, the following equivalent units schedule has been prepared: Units started and completed Units, beginning work in process: 10,000 0% 10,000 40% Units, ending work in process: 6,000 x 100% 6,000 75% Equivalent units of output Direct Materials Conversion Costs 28,000 28,000 4,000 6,000 4,500 36,500 34,000 The cost per equivalent unit for the period was as follows: Direct materials Conversion costs Total $2.00 6.00 $8.00 The cost of beginning work in process was direct materials, $40,000; conversion costs, $30,000. Required: 1. Determine the cost of ending work in process. Determine the cost of goods transferred out. 2. Prepare a physical flow schedule. K-Briggs Company Physical Flow Schedule Units to account for: Total units to account for Units accounted for: Units completed: Total units accounted for method to account for its manufacturing costs. The product Dama makes passes through two processes: Cutting and Sewing. During April, Dama's controller prepared the following equivalent units schedule for the Cutting Department: Units started and completed Direct Materials 45,000 Conversion Costs 45,000 Units, beginning work in process: 14,000 0% 14,000 50% Units, ending work in process: 20,000 100% 20,000 25% 7,000 20,000 5,000 57,000 Equivalent units of output 65,000 Costs in beginning work in process were direct materials, $25,000; conversion costs, $70,000. Manufacturing costs incurred during April were direct materials, $195,000; conversion costs, $364,800. Required: 1. Prepare a physical flow schedule for April. Dama Company Physical Flow Schedule Units to account for: Total units to account for Units accounted for: Total units accounted for 2. Compute the cost per equivalent unit for April. If required, round your answer to the nearest cent. per equivalent unit 3. Determine the cost of ending work in process and the cost of goods transferred out. Cost of ending work in process Cost of goods transferred out 4. Prepare the journal entry that transfers the costs from Cutting to Sewing. Equivalent Units: FIFO Method The following data are for four independent process-costing departments. Inputs are added continuously. Beginning inventory Percent completion A B C D 5,000 4,000 30% 75% 45,000 60% Units started 24,000 20,000 49,000 35,000 Ending inventory 4,000 9,000 10,000 Percent completion 20% 30% 20% Required: Compute the equivalent units of production for each of the four departments using the FIFO method. Equivalent Units Department A Department B Department C Department D Weighted Average Method, FIFO Method, Physical Flow, Equivalent Units Heap Company manufactures a product that passes through two processes: Fabrication and Assembly. The following information was obtained for the Fabrication Department for September: a. All materials are added at the beginning of the process. b. Beginning work in process had 93,600 units, 35 percent complete with respect to conversion costs. c. Ending work in process had 16,000 units, 30 percent complete with respect to conversion costs. d. Started in process, 108,900 units. Required: 1. Prepare a physical flow schedule. Heap Company Units to account for: Physical Flow Schedule Total units to account for Units accounted for: Units completed and transferred out: Total units accounted for 2. Compute equivalent units using the weighted average method. Weighted average method: Direct Materials Conversion Costs Equivalent Units 3. Compute equivalent units using the FIFO method. FIFO method: Direct Materials Conversion Costs Equivalent Units