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:

In Cutting, all direct materials are added at the beginning of the process.

Beginning work in process consisted of 41,000 units, 20 percent complete with respect to direct labor and overhead. Costs in beginning inventory included direct materials, $1,225,000; direct labor, $222,800; and applied overhead, $150,000.

Costs added to production during the month were direct materials, $2,409,200; direct labor, $3,454,700. 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

At the end of the month, 121,200 units were transferred out to Welding, leaving 13,400 units in ending work in process, or 25 percent complete.

Required:

Question Content Area

1. Prepare a physical flow schedule.

blank Swasey Fabrication, Inc. Physical Flow Schedule

Units to account for:	blank
Units, beginning work in processUnits completed and transferred outUnits, ending work in process	- Select -
Units completed and transferred outUnits, ending work in processUnits started (transferred in)	- Select -
Total units to account for	fill in the blank 6378d8f78fbeff9_5
Units accounted for:	blank
Units, beginning work in processUnits completed and transferred outUnits started (transferred in)	- Select -
Units, beginning work in processUnits, ending work in processUnits started (transferred in)	- Select -
Total units accounted for	fill in the blank 6378d8f78fbeff9_10

Question Content Area

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

	Equivalent Units
Direct Materials	fill in the blank 52acd8013f82065_1
Conversion Costs	fill in the blank 52acd8013f82065_2

3. Compute unit cost under weighted average.

Unit direct materials cost	$fill in the blank 52acd8013f82065_3
Unit conversion costs	fill in the blank 52acd8013f82065_4
Total unit cost	$fill in the blank 52acd8013f82065_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 52acd8013f82065_6
Ending WIP	$fill in the blank 52acd8013f82065_7

Question Content Area

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

blank	CashFinished GoodsOverhead ControlWork in Process-CuttingWork in Process-Welding	- Select -
	CashFinished GoodsOverhead ControlWork in Process-CuttingWork in Process-Welding		- Select -