In: Accounting
Unit Information with BWIP, FIFO Method
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, 60% complete* | 10,000 |
Units completed and transferred out | 82,000 |
Units in process, July 31, 90% complete* | 15,900 |
* With respect to conversion costs. |
Required:
1. Prepare a physical flow schedule for July.
Jackson Products | ||
Physical Flow Schedule | ||
For the Month of July | ||
Units to account for: | ||
Total units to account for | ||
Units accounted for: | ||
Units completed and transferred out: | ||
Total units accounted for |
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".
Direct Materials | Conversion Costs | |
Add: Units in beginning work in process × Percentage to complete: | ||
x % |
||
x % |
||
Add: Units in ending work in process × Percentage complete: | ||
x % |
||
x % |
||
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?
equivalent units
1) Physical flow schedule
Jackson produts |
Physical flow schedule |
For the month of july |
Units to accounts for | ||
beginning work in progress | 10,000 | |
units started in july | 97,900 | |
total units account for | 107,900 | |
units account for | ||
units completed and transferred out : | ||
started and completed | 82,000 | |
from beginning work in progress | 10,000 | 92,000 |
ending work in progress | 15,900 | |
total units acount for | 107,900 |
notes : units started in july = 82,000 + 15,900 = 97,900
(2) Jackson products
Equivalent units schedule
Direct material | conversion cost | |
Units completed & transferred out | 82000 | 82000 |
Add : units in the beginning work in progress * % to complete | ||
10,000 * 0 | 0 | |
10,000 * 40% | 4,000 | |
Add : units in ending work in progress * % complete | ||
15,900 * 100 | 15,900 | |
15,900 * 90 % | 14,310 | |
Total equivalent units | 97,900 | 100,310 |
(3) Jacksons Products
Equivalent units schedule
Direct material | conversion cost | |
Units completed & transferred out | 82000 | 82000 |
Add : units in the beginning work in progress * % to complete | ||
10,000 * 30% | 3,000 | |
10,000 * 40% | 4,000 | |
Add : units in ending work in progress * % complete | ||
15,900 * 70% | 11,130 | |
15,900 * 90 % | 14,310 | |
Total equivalent units | 96,130 |
100,310 |