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, $$1,205,000$; direct labor, $$222,800$; and applied overhead, $$150,000.$

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

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:

Question Content Area

$1.$ Prepare a physical flow schedule.

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Swasey Fabrication, Inc.

Physical Flow Schedule

Units to account for: blank

Units, beginning work in process

Units, beginning work in process

$41,500$

Units started $($transferred in$)$

Units started $($transferred in$)$

$94,000$

Total units to account for fill in the blank $73$dd$39$fcb$05$dfd$6\_5$

$135,000$

Units accounted for: blank

Units completed and transferred out

Units completed and transferred out

$121,600$

Units, ending work in process

Units, ending work in process

$13,400$

Total units accounted for fill in the blank $73$dd$39$fcb$05$dfd$6\_10$

$135,000$

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Feedback

$1.$ 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.

Question Content Area

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

Equivalent Units

Direct Materials fill in the blank cf$88$a$00$cf$047058\_1$

$135,000$

Conversion Costs fill in the blank cf$88$a$00$cf$047058\_2$

$124,950$

$3.$ Compute unit cost under weighted average.

Unit direct materials cost $fill in the blank cf$88$a$00$cf$047058\_3$

$27$

Unit conversion costs fill in the blank cf$88$a$00$cf$047058\_4$

$50$

Total unit cost $fill in the blank cf$88$a$00$cf$047058\_5$

$77$

$4.$ 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 cf$88$a$00$cf$047058\_6$

$9,363,200$

Ending WIP $fill in the blank cf$88$a$00$cf$047058\_7$

$529,300$

Question Content Area

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

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Work in Process$-$Welding

$9,363,200$

Work in Process$-$Cutting

$9,363,200$