Using the same data found in Exercise 6.22, assume the company uses the FIFO method.
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.
Prepare a schedule of equivalent units, and compute the unit cost for the month of December.

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