Heap Company manufactures a product that passes through two processes: Fabrication and Assembly. The following information was obtained for the Fabrication Department for September:

2. All materials are added at the beginning of the process.
4. Beginning work in process had 80,000 units, 30 percent complete with respect to conversion costs.
6. Ending work in process had 17,000 units, 25 percent complete with respect to conversion costs.
8. Started in process, 95,000 units.

Required:

1.Prepare a physical flow schedule.

2.Compute equivalent units using the weighted average method.

3.Compute equivalent units using the FIFO method.

2,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 MaterialsConversion CostsUnits started and completed28,00028,000Units, beginning work in process: 10,000 0% 10,000 40%4,000Units, ending work in process: 6,000 100%6,000 6,000 75%4,500Equivalent units of output34,00036,500

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

Direct materials$2.00Conversion costs6.00 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.

Determine the cost of goods transferred out.

2.Prepare a physical flow schedule.