1. 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:

   		Direct Materials				Conversion Costs
   Units started and completed			28,000				28,000
   Units, beginning work in process:
   10,000 0%
   10,000 40%							4,000
   Units, ending work in process:
   6,000 100%			6,000
   6,000 75%							4,500
   Equivalent units of output			34,000				36,500

   The cost per equivalent unit for the period was as follows:

   Direct materials		$2.00
   Conversion costs		7.00
   Total		$9.00

   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

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   A physical flow schedule shows the units to account for and what happened to them.