Question - Manzer Company uses the FIFO method to account for the cost of production. For crushing, the first processing department, the following equivalent units schedule has been prepared for November:
Direct materials conversion cost
Units started and completed 22,000 22,000
Units beginning work in process: 10,000*0% ---- --- 10,000*40% ---- 4,000
Units ending work in process 6,000*100% 6,000 ---- 6,000*75% ---- 4,500
Equivalent units of output 28,000 30,500
The cost per equivalent unit for the period was as follows:
Direct materials $3.00
Conversion cost 5.00
Total $8.00
The cost of beginning work in process was direct materials, $30,000; conversion costs, $25,000
Required
1. Determine the cost of ending work in process and the cost of goods transferred out
2. Prepare a physical flow schedule