Question

Jackson Products produces a barbeque sauce using three departments: Cooking, Mixing, and Bottling. In the Cooking Department, all materials are added at the beginning of the process. Output is measured in ounces. The production data for July are as follows:

Production:
Units in process, July 1, 70% complete*	10,000
Units completed and transferred out	81,000
Units in process, July 31, 80% complete*	15,000
* With respect to conversion costs. 1. Prepare a physical flow schedule for July. 2. Prepare an equivalent units schedule for July using the FIFO method. Enter percentages as whole numbers. If an amount box does not require an entry, enter "0". 3. What if 70 percent of the materials were added at the beginning of the process and 30 percent were added at the end of the process (all ingredients used are treated as the same type or category of materials)? How many equivalent units of materials would there be?

Answer 1

Solution 1:

Jackson Products
Cooking Department
Physical flow schedule
Particulars	Physical units
Units to be accounted for:
Beginning WIP Inventory	10000
Units started this period	86000
Total unit to be accounted for	96000
Units Accounted for:
Units completed and transferred out	81000
Units in Ending WIP	15000
Total units accounted for	96000

Solution 2:

Jackson Products
Cooking Department
Computation of Equivalent unit (FIFO)
Particulars	Physical units	Material	Conversion
Units to be accounted for:
Beginning WIP Inventory	10000
Units started this period	86000
Total unit to be accounted for	96000
Units Accounted for:
Units completed and transferred out
From beginning inventory Material - 0% Conversion - 30%	10000	0	3000
Started and completed currently	71000	71000	71000
Units in ending WIP Material - 100% Conversion - 80%	15000	15000	12000
Total units accounted for	96000	86000	86000

Solution 3:

Jackson Products
Cooking Department
Computation of Equivalent unit (FIFO)
Particulars	Physical units	Material	Conversion
Units to be accounted for:
Beginning WIP Inventory	10000
Units started this period	86000
Total unit to be accounted for	96000
Units Accounted for:
Units completed and transferred out
From beginning inventory Material - 30% Conversion - 30%	10000	3000	3000
Started and completed currently	71000	71000	71000
Units in ending WIP Material - 70% Conversion - 80%	15000	10500	12000
Total units accounted for	96000	84500	86000