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Weighted Average Method, Physical Flow, Equivalent Units, Unit Costs, Cost Assignment, ABC

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, plant reported the following data:

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

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.$

Costs added to production during the month were direct materials, $$2,678,400$; direct labor, $$3,454,700.$ Overhead was assigned using the following information:

Activity Rate Actual Driver Usage

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

At the end of the month, $121,200$ units were transferred out to Welding, leaving $13,400$ units in ending work in process, or $25$ percent complete.

Required:

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$1.$ Prepare a physical flow schedule.

blank

Swasey Fabrication, Inc.

Physical Flow Schedule

Units to account for: blank

Units, beginning work in process

Units, beginning work in process

$41,000$

Units started $($transferred in$)$

Units started $($transferred in$)$

Total units to account for fill in the blank cd$637$ef$8$f$032000\_5$

Units accounted for: blank

Units completed and transferred out

Units completed and transferred out

Units, ending work in process

Units, ending work in process

Total units accounted for fill in the blank cd$637$ef$8$f$032000\_10$

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

Equivalent Units

Direct Materials fill in the blank $221$b$8203$afcd$05$b$\_1$

Conversion Costs fill in the blank $221$b$8203$afcd$05$b$\_2$

$3.$ Compute unit cost under weighted average.

Unit direct materials cost $fill in the blank $221$b$8203$afcd$05$b$\_3$

Unit conversion costs fill in the blank $221$b$8203$afcd$05$b$\_4$

Total unit cost $fill in the blank $221$b$8203$afcd$05$b$\_5$

$4.$ 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 $fill in the blank $221$b$8203$afcd$05$b$\_6$

Ending WIP $fill in the blank $221$b$8203$afcd$05$b$\_7$

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