Rose Limited manufactures bumpers (plastic or metal, depending on the plant) for automobiles. Each bumper passes through three processes; Molding, Drilling and Painting.

The weighted average method is used. In August, the Molding Department reported the following data:

(a) In Molding, all direct materials are added at the beginning of the process.

(b) Beginning work in process consisted of 9,000 units, 20% complete with respect to direct labour and overheads. Costs in beginning inventory included direct materials, $270,000 and conversion costs, $82,800.

(c) Costs added to production during the month were direct materials, $570,000 and conversion costs, $1,304,700.

(d) At the end of the month, 27,000 units were transferred out to Drilling, leaving 3,000 units in ending work in process, 25% complete.

Required:

Prepare the following:

(1) A physical flow schedule

(a) A schedule of equivalent units

(b) Cost per equivalent unit

(c) Cost of goods transferred out and ending work in progress

(d) A cost reconciliation

(2) How is the equivalent unit calculation affected when direct materials are added at the beginning or end of the process rather than uniformly throughout the