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.
1. Prepare a physical flow schedule.
Swasey Fabrication, Inc. | |
Physical Flow Schedule | |
Units to account for: | |
Units, beginning work in process | |
Units started (transferred in) | |
Total units to account for | |
Units accounted for: | |
Units completed and transferred out | |
Units, ending work in process | |
Total units accounted for |
2. Calculate equivalent units of production for direct materials and conversion costs.
Equivalent Units | |
Direct Materials | |
Conversion Costs |
3. Compute unit cost. Round unit costs &
final answer to three decimal places.
$ 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.
$
Calculate the cost of ending inventory. In your calculations, round unit costs to three decimal places. Round your final answer to the nearest dollar.
NEED HELP WITH NUMBER 4!
Cost of Finished Goods | |||
Existing cost of 40000 units = | $ 1,587,000.00 | ($ 1215000 + $ 222000 + $ 150000)) | |
Cost of Completing 40000 units: | |||
Conversion cost = | $ 1,598,978.72 | ( 32000 x $ 49.97) | |
Cost of 82000 units = | $ 6,296,862.15 | (82000 x $ 76.79) | |
Total | $ 9,482,841 |
Cost of ending WIP | |||
Units | Cost/eq. units | Costs | |
Direct Material | 14000 | $ 26.82 | $ 375,520.83 |
Conversion | 3500 | $ 49.97 | $ 174,888.30 |
Total | $ 550,409 |
Is this correct?
FIFO Method, Physical Flow, Equivalent Units, Unit Costs, Cost Assignment Swasey Fabrication, Inc., manufactures frames for...
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