Service Organization with Work$-$in$-$Process Inventories, Multiple Departments, FIFO Method, Unit Cost

Hepworth Credit Corporation is a wholly owned subsidiary of a large manufacturer of computers. Hepworth is in the business of financing computers, software, and other services that the parent corporation sells. Hepworth has two departments that are involved in financing services: the Credit Department and the Business Practices Department. The Credit Department receives requests for financing from field sales representatives, records customer information on a preprinted form, and then enters the information into the computer system to check the creditworthiness of the customer. $($Other actions may be taken if the customer is not in the database.$)$ Once creditworthiness information is known, a printout is produced with this information plus other customer$-$specific information. The completed form is transferred to the Business Practices Department.

The Business Practices Department modifies the standard loan covenant as needed $($in response to customer request or customer risk profile$).$ When this activity is completed, the loan is priced. This is done by keying information from the partially processed form into a personal computer spreadsheet program. The program provides a recommended interest rate for the loan. Finally, a form specifying the loan terms is attached to the transferred$-$in document. A copy of the loan$-$term form is sent to the sales representative and serves as the quote letter.

The following cost and service activity data for the Business Practices Department are provided for the month of May:

Transferred$-$in applications$11,200$Applications in process, May $1,40\%$ complete$*2,000$Applications in process, May $31,25\%$ complete$*3,200*$All materials and supplies are used at the end of the process.

$$Transferred In$$Direct Materials$$Conversion CostsCosts:$$Beginning work in process$$$$18,000$$$11,200$Costs added$112,000$$$5,000150,000$

Required:

Question Content Area

$1.$ Using the FIFO method, prepare the following for the Business Practices Department:

a$.$ A physical flow schedule:

blank

Hepworth Credit Corporation

Physical flow schedule

Started and completedUnits, beginning work in processUnits, ending work in processUnits, beginning work in process

Units, beginning work in process

Started and completedUnits, ending work in processUnits startedStarted and completed

Started and completed

From beginning work in processPhysical flow schedule:Started and completedTotal units accounted forTotal units to account forUnits completed and transferred out:Units, ending work in processUnits startedTotal units to account for

Total units to account forUnits completed and transferred out:blank

From beginning work in processStarted and completedUnits, ending work in processUnits started

$-$ Select $-$

From beginning work in processUnits, ending work in processUnits started

$-$ Select $-$

From beginning work in processUnits, ending work in processUnits started

$-$ Select $-$

From beginning work in processPhysical flow schedule:Started and completedTotal units accounted forTotal units to account forUnits completed and transferred out:Units, ending work in processUnits startedTotal units accounted for

Total units accounted for

Question Content Area

b$.$ An equivalent units schedule. Enter percentages as whole numbers. If an amount is zero, enter $"0".$

Hepworth Credit Corporation

Equivalent units scheduleTransferred InDirect MaterialsConversion Costs

Equivalent units of outputUnits started and completedEquivalent units of output

Equivalent units of outputEquivalent units of outputEquivalent units of outputBeginning work in process:

fill in the blank $7659$affdbfa$301$f$\_5$

x

fill in the blank $7659$affdbfa$301$f$\_6$

$\%$

fill in the blank $7659$affdbfa$301$f$\_7$

fill in the blank $7659$affdbfa$301$f$\_8$

x

fill in the blank $7659$affdbfa$301$f$\_9$

$\%$

fill in the blank $7659$affdbfa$301$f$\_10$

fill in the blank $7659$affdbfa$301$f$\_11$

x

fill in the blank $7659$affdbfa$301$f$\_12$

$\%$

fill in the blank $7659$affdbfa$301$f$\_13$Ending work in process:

fill in the blank $7659$affdbfa$301$f$\_14$

x

fill in the blank $7659$affdbfa$301$f$\_15$

$\%$

fill in the blank $7659$affdbfa$301$f$\_16$

fill in the blank $7659$affdbfa$301$f$\_17$

x

fill in the blank $7659$affdbfa$301$f$\_18$

$\%$

fill in the blank $7659$affdbfa$301$f$\_19$

fill in the blank $7659$affdbfa$301$f$\_20$

x

fill in the blank $7659$affdbfa$301$f$\_21$

$\%$

fill in the blank $7659$affdbfa$301$f$\_22$

Equivalent units of outputUnits started and completed

$-$ Select $--$ Select $--$ Select $-$

Question Content Area

c$.$ Calculation of unit costs. If required, round your answer to the nearest cent.

$fill in the blank $910$c$9$bf$43$ffdfc$8\_1$ per unit

d$.$ Cost of ending work in process.

$fill in the blank $910$c$9$bf$43$ffdfc$8\_2$

Cost of units transferred out.

$fill in the blank $910$c$9$bf$43$ffdfc$8\_3$