FIFO Method, Physical Flow, Equivalent Units, Unit Costs, Cost AssignmentSwasey 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 40,000 units, 20 percent complete with respect to direct labor and overhead. Costs in beginning inventory included direct materials, $1,215,000; direct labor, $223,000; and applied overhead, $150,000.Costs added to production during the month were direct materials, $2,575,000; direct labor, $3,471,050. Overhead was assigned using the following information:Activity Rate Actual Driver UsageInspection $150 per inspection hour 4,000 inspection hoursMaintenance $750 per maintenance hour 1,600 maintenance hoursReceiving $300 per receiving order 2,000 receiving ordersAt the end of the month, 121,000 units were transferred out to Welding, leaving 13,000 units in ending work in process, or 25 percent complete.Assume that the FIFO method is used. 4. Calculate the cost of goods transferred to Painting at the end of the month. In your calculations, round unit costs to threedecimal places. Round your final answer to the nearest dollar.Calculate the cost of ending inventory. In your calculations, round unit costs to three decimal places. Round your final answer tothe nearest dollar. 1. Prepare a physical flow schedule.Swasey Fabrication, Inc.Physical Flow ScheduleUnits to account for:Total units to account forUnits accounted for:Total units accounted for2. Calculate equivalent units of production for direct materials and conversion costs.Equivalent UnitsDirect MaterialsConversion Costs3. Compute unit cost. Round unit costs & final answer to three decimal places.$1per unit

Equivalent units under the FIFO method of process costing are the number of finished units that…

Answered: Swasey Fabrication, Inc., manufactures…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

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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:

In Cutting, all direct materials are added at the beginning of the process.
Beginning work in process consisted of 40,000 units, 20 percent complete with respect to direct labor and overhead. Costs in beginning inventory included direct materials, $1,215,000; direct labor, $223,000; and applied overhead, $150,000.

Costs added to production during the month were direct materials, $2,575,000; direct labor, $3,471,050. 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