Part 1:

Swasey Fabrication Inc., manufactures frames for bicycles. Each frame passes through three processes: Cutting, Welding and Painting. In September, the Cutting Department of the Tulsa, Oklahoma reported the following data:

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

b. Beginning work in process inventory consisted of 40,500 units, 20 percent complete as to conversion. Costs attached to this inventory: -Direct materials, $1,215,000; - Direct labour, $222,600; Applied overhead, $150,000.

c. Costs added to production during the month were direct materials, $2,565,000; direct labour, $3,471,150. Overhead was assigned using the following information:

Inspection: $150 per inspection hour @ 4,000 inspection hours; Maintenance $750 per maintenance hour @ 1,600 maintenance hours; Receiving $300 per receiving order @ 2,000 receiving orders

d. At the end of the month, 121,500 units were transferred out to Welding, leaving 13,500 units in ending work in process, 25 percent complete.

Required:

1. Prepare a physical flow schedule.

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

3. Compute unit cost under weighted average.

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

5. Prepare the jounal entry that transfers the goods from Cutting to Welding.

Part 2:

Refer to the data above. Assume that the FIFO method is used.

1. Prepare a physical flow schedule.

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

3. Compute unit cost. Round to three decimal places.

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