Swasey Fabrication, Inc., manufactures frames for bicycles. Each frame passes through three processes: Cutting, Welding, and Painting.
Question:
a. In Cutting, all direct materials are added at the beginning of the process.
b. Beginning work in process consisted of 40,500 units, 20 percent complete with respect to direct labor and overhead. Costs in beginning inventory included direct materials, $1,215,000; direct labor, $222,600; and applied overhead, $150,000.
c. Costs added to production during the month were direct materials, $2,565,000; direct labor, $3,471,150. Overhead was assigned using the following information:
d. At the end of the month, 121,500 units were transferred out to Welding, leaving 13,500 units in ending work in process, or 25 percent complete.
Required:
1. Prepare a physical flow schedule.
2. Calculate equivalent units of production for direct materials and conversion costs.
3. Compute unit cost under weighted average.
4. Calculate the cost of goods transferred to Welding at the end of the month. Calculate the cost of ending inventory.
5. Prepare the journal entry that transfers the goods from Cutting to Welding.
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Cornerstones of Cost Management
ISBN: 978-1285751788
3rd edition
Authors: Don R. Hansen, Maryanne M. Mowen
Question Posted: