C Prepare a physical flow schedule Required: 1. Prepare a physical flow schedule
ID: 2562359 • Letter: C
Question
C
Prepare a physical flow schedule
Required:
1. Prepare a physical flow schedule.
Swasey Fabrication, Inc.
Physical Flow Schedule
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2. Calculate equivalent units of production for direct materials and conversion costs.
3. Compute unit cost under weighted average.
4. Calculate the cost of goods transferred to Welding at the end of the month. Calculate the cost of ending inventory.
5. Prepare the journal entry that transfers the goods from Cutting to Welding.
Hide1. Prepare a physical flow schedule.
Swasey Fabrication, Inc.
Physical Flow Schedule
Explanation / Answer
1. Physical flow schedule:
Units to account for:
Units in beginning WIP=40,500
Units started=94,500. (121500+13500-40500)
Total units to account for=135,000
Units accounted for:
Units started and completed=81000. (121500-40500)
Unit in Beginning WIP=40500
Units in ending WIP=13500
Total units accounted for= 135,000
2. Equivalent unit of production:
3. Applied overhead:
Inspection=$150×4000=$600,000
Maintenance=$750×1600=$$1,200,000
Receiving=$300 ×2000=$600,000
Total=$2,400,000
Unit cost:
Beginning WIP cost
$1,215,000
$372,600
(222600+150,000)
$1,587,600
Cost added during period
$2,565,000
$5,871,150
(3471,150+$2400,000)
$8,436,150
4. Cost of good transferred=121500×$78=$9477,000
Cost of ending WIP=(13500×$28)+(3375×50)
=$546,750
5.
Entry:
Direct material conversion Units transferred out 121500 121500 Add units in ending WIP 13500(100%) 3375(25%) Equivalent unit 135,000 124,875Related Questions
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