FIFO Method, Equivalent Units, Unit Cost, Multiple Departments
Fordman Company has a product that passes through two processes: Grinding and Polishing. During December, the Grinding Department transferred 20,000 units to the Polishing Department. The cost of the units transferred into the second department was $40,000. Direct materials are added uniformly in the second process. Units are measured the same way in both departments.
The second department (Polishing) had the following physical flow schedule for December:
| Units to account for: | | |
| Units, beginning work in process | 4,000 | (40% complete) |
| Units started | ? | |
| Total units to account for | ? | |
| Units accounted for: | | |
| Units, ending work in process | 8,000 | (50% complete) |
| Units completed | ? | |
| Units accounted for | ? | |
Costs in beginning work in process for the Polishing Department were direct materials, $5,000; conversion costs, $6,000; and transferred in, $8,000. Costs added during the month: direct materials, $32,000; conversion costs, $50,000; and transferred in, $40,000.
Assume the company uses the FIFO method.
Required: