Using the same data found in Exercise 6.22, assume the company uses the FIFO method.

Required:
Prepare a schedule of equivalent units, and compute the unit cost for the month of December.

In Exercise Fordman Company has a product that passes through two processes: Grinding and Polishing. During December, the Grinding Department transferred 20,000 units to the Polishing Department. The cost of the units transferred into the second department was $40,000. Directmaterials are added uniformly in the second process. Units are measured the same way in both departments.

The second department (Polishing) had the following physical flow schedule for December:

Units to account for:

Units, beginning work in process...... 4,000 (40% complete)

Units started .............?

Total units to account for .........?

Units accounted for:

Units, ending work in process .....8,000 (50% complete)

Units completed ........?

Units accounted for ........?

Costs in beginning work in process for the Polishing Department were direct materials, $5,000; conversion costs, $6,000; and transferred in, $8,000. Costs added during the month: direct materials, $32,000; conversion costs, $50,000; and transferred in, $40,000.