Question

1. Weighted Average Method, FIFO Method, Physical Flow, Equivalent Units

   Heap Company manufactures a product that passes through two processes: Fabrication and Assembly. The following information was obtained for the Fabrication Department for September:

   1. All materials are added at the beginning of the process.
   2. Beginning work in process had 90,300 units, 20 percent complete with respect to conversion costs.
   3. Ending work in process had 12,900 units, 20 percent complete with respect to conversion costs.
   4. Started in process, 98,200 units.

   Required:

   1. Prepare a physical flow schedule.

   Heap Company
   Physical Flow Schedule
   Units to account for:
   Total units to account for
   Units accounted for:
   Units completed and transferred out:
   Total units accounted for

   2. Compute equivalent units using the weighted average method.

   Weighted average method:	Equivalent Units
   Direct Materials
   Conversion Costs

   3. Compute equivalent units using the FIFO method.

   FIFO method:	Equivalent Units
   Direct Materials
   Conversion Costs

Answer 1

Weighted Average								FIFO
UNITS TO ACCOUNT FOR:								UNITS TO ACCOUNT FOR:
Beginning Work in Process units					90,300			Beginning Work in Process units					90,300
Add: Units Started in Process					98,200			Add: Units Started in Process					98,200
Total Units to account for:					188,500			Total Units to account for:					188,500
UNITS TO BE ACCOUNTED FOR:								UNITS TO BE ACCOUNTED FOR:
Units completed and transferred out					175,600			Units completed from Beginning WIP					90,300
Ending Work in Process					12,900			Units started and completed					85,300
Total Units to be accounted for:					188,500			Ending Work in Process					12,900
								Total Units to be accounted for:					188,500
Equivalent Units:								Equivalent Units:
			UNITS	Material Cost		Conversion					UNITS	Material Cost		Conversion
				% Completion	Units	% Completion	Units					% Completion	Units	% Completion	Units
Units complted			175600	100%	175,600	100%	175,600	Units completed from Beginning WIP			90300	0%	0	80%	72,240
Ending Work in Process			12900	100%	12,900	20%	2,580	Units started and completed			85300	100%	85300	100%	85300
Total Equivalent units			188500		188,500		178,180	Ending Work in Process			12900	100%	12,900	20%	2,580
								Total Equivalent units			188500		98,200		160,120