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			25,000				25,000
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			31,000				33,500

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

Direct materials		$2.00
Conversion costs		6.00
Total		$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. $39,000 (Answer)

Determine the cost of goods transferred out. $

2. Prepare a physical flow schedule.

K-Briggs Company
Physical Flow Schedule
Units to account for:
Units, beginning work in process $10,000 (Answer)
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