Cornerstone of Cost Management: E6-17 K-Bridge Company uses the FIFO Method

Cornerstone of Cost Management
Exercise 6.17 FIFO Method, valuation of Goods Transferred Out and Ending Work in Process
K-Bridge Company uses the FIFO Method to account for the costs of production. For Crushing, the first processing department, the following equivalent units schedule has been prepared
Direct Materials Conversion Costs
Units started and completed 28,000 28,000
Units, beginning work in process
10,000 x 0% - -
10,000 x 40% - 4,000
Units, ending work in process:
6,000 x 100% 6,000
6,000 x 75% 4,500
Equivalent units of output 34,000 36,500
The cost of beginning work in process was direct materials, $40,000; conversion costs, $30,000.

1. Determine the cost of ending work in process and the cost of goods transferred out.
2. Prepare a physical flow schedule.
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