Question

Karsen Company produces a pain medication that passes through two departments: Mixing and Tableting. Karsen uses the weighted average method. Data for November for Mixing is as follows: BWIP was zero; EWIP had 36,000 units, 50% complete; and 460,000 units were started. Tableting's data for November is as follows: BWIP was 34,000 units, 20% complete; and 12,000 units were in EWIP, 40% complete.

Required:

1. For Mixing, calculate the (a) number of units transferred to Tableting, and (b) equivalent units of production.

a. Units transferred to Tableting

b. Equivalent units of production

2. For Tableting, calculate the number of units transferred out to Finished Goods.

3. Conceptual Connection: Suppose that the units in the mixing department are measured in grams, while the units in Tableting are measured in bottles of 100 tablets, with a total weight of eight grams (excluding the bottle).

Now, repeat Requirement 2 using this approach.

Units transferred out:

Answer 1

1. For mixing :

a. Number of units transferred to Tableting.	BWIP + units introduced - EWIP 0 + 460,000 - 36000 = 424,000 units
b. Equivalent units of production.	(424,000 Units transferred to Tableting) + 50% of 36000 =442,000 units

2. For Tableting, the number of units transferred out to Finished Goods:

BWIP + Transfer-In from mixing department - EWIP

34000 + 424,000 - 12000 = 446,000 units

3.  Suppose that the units in the mixing department are measured in grams, while the units in tableting are measured in bottles of 100 tablets, with a total weight of eight grams (excluding the bottle), then number of bottles transferred out to finished goods =

BWIP = 34000 / 8 grams per bottle of 100 tablets +

TRANFER IN = 424000 / 8 grams per bottle of 100 tablets -

EWIP = 12000 / 8 grams per bottle of 100 tablets i.e

4250 + 53000 - 1500 = 55750 bottles.