Weighted Average Method, Physical Flow, Equivalent Units, Unit Costs, Cost Assignment, ABC

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:

1. In Cutting, all direct materials are added at the beginning of the process.
2. Beginning work in process consisted of 41,500 units, 20 percent complete with respect to direct labor and overhead. Costs in beginning inventory included direct materials, $1,225,000; direct labor, $222,500; and applied overhead, $150,000.
3. Costs added to production during the month were direct materials, $2,684,200; direct labor, $3,457,500. 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

4. At the end of the month, 121,200 units were transferred out to Welding, leaving 13,600 units in ending work in process, or 25 percent complete.

Required:

1. Prepare a physical flow schedule.

Swasey Fabrication, Inc.
Physical Flow Schedule
Units to account for:
Units, beginning work in process	fill in the blank fe67f10a8041f8b_2
Units started (transferred in)	fill in the blank fe67f10a8041f8b_4
Total units to account for	fill in the blank fe67f10a8041f8b_5
Units accounted for:
Units completed and transferred out	fill in the blank fe67f10a8041f8b_7
Units, ending work in process	fill in the blank fe67f10a8041f8b_9
Total units accounted for	fill in the blank fe67f10a8041f8b_10

2. Calculate equivalent units of production for direct materials and conversion costs.

	Equivalent Units
Direct Materials	fill in the blank 018478018fe1f80_1
Conversion Costs	fill in the blank 018478018fe1f80_2

3. Compute unit cost under weighted average.

Unit direct materials cost	$fill in the blank 018478018fe1f80_3
Unit conversion costs	fill in the blank 018478018fe1f80_4
Total unit cost	$fill in the blank 018478018fe1f80_5

4. Calculate the cost of goods transferred to Welding at the end of the month. Calculate the cost of ending inventory.

Cost of goods transferred out	$fill in the blank 018478018fe1f80_6
Ending WIP	$fill in the blank 018478018fe1f80_7

5. Prepare the journal entry that transfers the goods from Cutting to Welding.

		fill in the blank fa1685079f91fb5_2
			fill in the blank fa1685079f91fb5_4