Process K-Briggs Company uses the FIFO method to account for the costs of production. For Crushing, the

Question:

Process K-Briggs Company uses the FIFO method to account for the costs of production. For Crushing, the first processing department, the following equivalent units schedule has been prepared:

The cost per equivalent unit for the period was as follows:
Direct materials ........ $2.00
Conversion costs ........ 6.00
Total .............. $8.00
The cost of beginning work in process was direct materials, $40,000; conversion costs, $30,000.
Required:
1. Determine the cost of ending work in process and the cost of goods transferred out.
2. Prepare a physical flow schedule.