Question

Nonuniform Inputs, Transferred-In Cost

Drysdale Dairy produces a variety of dairy products. In Department 12, cream (transferred in from Department 6) and other materials (sugar and flavorings) are mixed at the beginning of the process and churned to make ice cream. The following data are for Department 12 for August:

Production:
Units in process, August 1, 35% complete*	50,000
Units completed and transferred out	120,000
Units in process, August 31, 70% complete*	40,000

*With respect to conversion costs.

1. Prepare a physical flow schedule for the month.

Drysdale Dairy
Physical Flow Schedule
For the Month of August
Units to account for:
Units in beginning work in process
Units started
Total units to account for
Units accounted for:
Units transferred out
Units in ending work in process
Total units accounted for

Feedback

Partially correct

2. Using the weighted average method, calculate equivalent units for the following categories: transferred-in, materials, and conversion.

Transferred-In	equivalent units
Materials	equivalent units
Conversion	equivalent units

Answer 1

Physical Flow Schedule
Units to account for
Units in Beginning work in process (35% complete)		50000
Units Started during the period		110000
Total Units to account for		160000
Units accounted for
Units Completed and trasnfered out
Started and completed	70000
Beginning Inventory	50000	120000
Units in Ending Work in process (70% Complete)		40000
Total Units accounted for		160000
Equivalent Production
Units Completed and Transfered Out = 120,000 Units
Add: Equivalent Units in Ending Inventory = 28000 Units
(40,000*70% Complete)
Total Equivalent Units of Produciton =148000 Units
Equivalent Unit of Transferred in
Units Started and Completed =70000
Equivalent Units in Ending Inventory = 28000
Equivalent Units of Transfered in =120000
Equivalent Units for Materials =160000
Equivalent Units for Conversion Cost= 148000 Units
( 120000 Completed and Transfered Out)
( 28000 Equivalent Units in Ending Inventory)