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 41,500 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, $2,409,200 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 2 Calculate equivalent units of production for direct materials and conversion costs Equivalent Units Direct Materials fill in the blank 8ba4f3fb0fb4fbe 1 Conversion Costs fill in the blank 8ba4f3fb0fb4fbe 2 3 Compute unit cost under weighted average Unit direct materials cost $fill in the blank 8ba4f3fb0fb4fbe 3 Unit conversion costs fill in the blank 8ba4f3fb0fb4fbe 4 Total unit cost $fill in the blank 8ba4f3fb0fb4fbe 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 8ba4f3fb0fb4fbe 6 Ending WIP $fill in the blank 8ba4f3fb0fb4fbe 7 5 Prepare the journal entry that transfers the goods from Cutting to Welding CashFinished GoodsOverhead ControlWork in Process CuttingWork in Process WeldingWork in Process Cutting Work in Process Cutting CashFinished GoodsOverhead ControlWork in Process CuttingWork in Process WeldingWork in Process Welding Work in Process Welding

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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:

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 41,500 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, $2,409,200; 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.

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

	Equivalent Units
Direct Materials	fill in the blank 8ba4f3fb0fb4fbe_1
Conversion Costs	fill in the blank 8ba4f3fb0fb4fbe_2

3. Compute unit cost under weighted average.

Unit direct materials cost	$fill in the blank 8ba4f3fb0fb4fbe_3
Unit conversion costs	fill in the blank 8ba4f3fb0fb4fbe_4
Total unit cost	$fill in the blank 8ba4f3fb0fb4fbe_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 8ba4f3fb0fb4fbe_6
Ending WIP	$fill in the blank 8ba4f3fb0fb4fbe_7

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

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