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, $222,800; and applied overhead, $150,000.
3. 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

4. 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.

Sway Fabrication, Inc. Physical Flow Schedule Un toccount for Units Beginning work in proces this started (transferred in 41.500 100 134,600 Total units to count for Un counted for Unit completed and transferred out Uw, wing work in proces 121.200 13:00 IND total sccounted 2. Calent units of breed and convencions Equivalent is Con Gists 2. Comunitat under weted average het de 27.00 . . 22.00 50.00 77.00 53.100