Painting. In September, the Cutting Department of the Tulsa, Oklahoma, plant reported the following data:

a$.$ In Cutting, all direct materials are added at the beginning of the process.

b$.$ Beginning work in process consisted of $41,000$ units, $20$ percent complete with respect to direct labor and overhead. Costs in

beginning inventory included direct materials, $$1,225,000$; direct labor, $$222,800$; and applied overhead, $$150,000.$

c$.$ Costs added to production during the month were direct materials, $$2,420,000$; direct labor, $$3,474,700.$ Overhead was assigned

using the following information:

d$.$ At the end of the month, $121,600$ units were transferred out to Welding, leaving $13,400$ units in ending work in process, or $25$

percent complete.

Required:

Prepare a physical flow schedule.

Swasey Fabrication, Inc.

Physical Flow Schedule

Units to account for:

Units, beqinning work in process $$

Units started $($transferred in$)$

Total units to account for

Units accounted for:

Units completed and transferred out $x$

Units, ending work in process $x$

Total units accounted for

Feedoack

s Check My Work

Calculate equivalent units of production for direct materials and conversion costs.

Equivalent Units

Direct Materials

Conversion Costs

Compute unit cost under weighted average.

Unit direct materials cost :

Unit conversion costs

Total unit cost

Calculate the cost of goods transferred to Welding at the end of the month. Calculate the cost of ending inventory.

Cost of goods transferred out

Ending WIP

$

Feedoack

T Check My Work

To calculate equivalent units, weighted average counts prior$-$period output in BWIP as belonging to the current period. So

completed units are treated as output of the current period.

Add beginning and current period production costs and divide by equivalent units. Calculate for direct materials and

conversion costs. Add two together to calculate total unit cost.

The cost of goods $($services$)$ transferred out is the unit cost multiplied by the units completed. The cost of EWIP is the unit

cost multiplied by the equivalent units found in EWIP. 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 unit and

crediting the WIP account of the transferring process $($department$).$

Prepare the journal entry that transfers the goods from Cutting to Welding.