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:

1. In Cutting, all direct materials are added at the beginning of the process.
2. Beginning work in process consisted of 41,500 units, 20 percent complete with respect to direct labor and overhead. Costs in beginning inventory included direct materials, $1,205,000; direct labor, $222,800; and applied overhead, $150,000.
3. Costs added to production during the month were direct materials, $2,710,000; direct labor, $3,474,700. 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

4. 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:

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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 processUnits completed and transferred outUnits, ending work in processUnits, beginning work in process	Units, beginning work in process
Units completed and transferred outUnits, ending work in processUnits started (transferred in)Units started (transferred in)	Units started (transferred in)
Total units to account for	fill in the blank 14153e091fcff80_5
Units accounted for:	blank
Units, beginning work in processUnits completed and transferred outUnits started (transferred in)Units completed and transferred out	Units completed and transferred out
Units, beginning work in processUnits, ending work in processUnits started (transferred in)Units, ending work in process	Units, ending work in process
Total units accounted for	fill in the blank 14153e091fcff80_10

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1. The physical flow schedule traces the units in process regardless of their stage of completion and provides the information needed for preparing the equivalent units schedule.

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

	Equivalent Units
Direct Materials	fill in the blank 010533f5ef91fa4_1
Conversion Costs	fill in the blank 010533f5ef91fa4_2

3. Compute unit cost under weighted average.

Unit direct materials cost	$fill in the blank 010533f5ef91fa4_3
Unit conversion costs	fill in the blank 010533f5ef91fa4_4
Total unit cost	$fill in the blank 010533f5ef91fa4_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 010533f5ef91fa4_6
Ending WIP	$fill in the blank 010533f5ef91fa4_7

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Partially correct

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

blank	CashFinished GoodsOverhead ControlWork in Process-CuttingWork in Process-WeldingWork in Process-Welding	Work in Process-Welding
	CashFinished GoodsOverhead ControlWork in Process-CuttingWork in Process-WeldingWork in Process-Cutting		Work in Process-Cutting