FIFO Method, Valuation of Goods Transferred Out and Ending Work in Process McCourt Company uses the FIFO method to account for the costs of production. For the first processing department, the following equivalent units schedule has been prepared: Conversion Units started and completed Units, beginning work in process: 5,000 x 0% 5,000 x 40% Units, ending work in process: 3,000 x 100% Direct Materials 25,000 Costs 25,000 2,000 3,000 3,000 x 75% 2,250 Equivalent units of output 28,000 29,250 The cost per equivalent unit for the period was as follows: Direct materials $3.00 7.00 $10.00 Conversion costs Total The cost of beginning work in process was direct materials, $50,000; conversion costs, $60,000. Required: 1. Determine the cost of ending work in process. Determine the cost of goods transferred out. 2. Prepare a physical flow schedule. McCourt Company Physical Flow Schedule Units to account for: Units, beginning work in process Units started Total units to account for Units accounted for: Units completed: Started and completed Units, beginning work in process Units, ending work in process Total units accounted for