In: Accounting
FIFO Method, Physical Flow, Equivalent Units, Unit Costs, Cost Assignment
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:
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 |
Assume that the FIFO method is used.
Required:
1.Prepare a physical flow schedule.
2. Calculate equivalent units of production for direct materials and conversion costs.
Equivalent Units | |
Direct Materials | |
Conversion Costs |
3. Compute unit cost. In your calculations,
round unit costs to three decimal places. Round your final answer
to the nearest cent.
$ per unit
4. Calculate the cost of goods transferred to
Painting at the end of the month. In your calculations, round unit
costs to three decimal places. Round your final answer to the
nearest dollar.
$
5. Calculate the cost of ending inventory. In your calculations,
round unit costs to three decimal places. Round your final answer
to the nearest dollar.
$