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: inits started and completed Units, beginning work in process: 5,000 x x.0% 5,000 40% Units, ending work in process: Conversion Direct Materials Costs 28,000 28,000 2,000 3,000 100% 3,000 3,000 x 75% 2,250 Equivalent units of output 31,000 32,250 The cost per equivalent unit for the period was as follows: Direct materials $2.00 Conversion costs 5.00 Total $7.00 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: Total units to account for Units accounted for: Units completed: Total units accounted for