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:

Direct Materials Conversion Costs

Units started and completed $28,00028,000$

Units, beginning work in process:

$5,000\backslash$times $0\%$

$5,000\backslash$times $40\%2,000$

Units, ending work in process:

$3,000\backslash$times $100\%3,000$

$3,000\backslash$times $75\%2,250$

Equivalent units of output $31,00032,250$

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

Direct materials $$2\mathrm{.}00$

Conversion costs $5\mathrm{.}00$

Total $$7\mathrm{.}00$

The cost of beginning work in process was direct materials, $$40,000$; conversion costs, $$60,000.$

Required:

Question Content Area

$1.$ Determine the cost of ending work in process.

$fill in the blank $1$bcdd$0021$fe$2042\_1$

$6,000$

Determine the cost of goods transferred out.

$fill in the blank $1$bcdd$0021$fe$2042\_2$

$11,250$

Feedback Area

Feedback

As the work is finished in a process $($department$),$ the partially completed units and all their associated costs are transferred to the next process $($department$)$ by debiting the WIP account of the process $($department$)$ receiving the units and crediting the WIP account of the transferring process $($department$).$

Question Content Area

$2.$ Prepare a physical flow schedule.

blank

McCourt Company

Physical Flow Schedule

Units to account for: blank

Units, beginning work in process

Units, beginning work in process

$0$

Units started

Units started

$28,000$

Total units to account for fill in the blank eb$185$bf$1502$c$055\_5$

$28,000$

Units accounted for: blank

Units completed: blank

Started and completed

Started and completed

$28,000$

Units completed

Units completed

Units, ending work in process

Units, ending work in process

$3,000$

Total units accounted for fill in the blank eb$185$bf$1502$c$055\_12$