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, 25% complete* 40,000 Units completed and transferred out 120,000 Units in process, August 31, 60% complete* 30,000 *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 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

Please show work, saw a post but work was not showing.

Answer 1

UNITS TO ACCOUNT FOR:
Units in beginning work in process	40000
Units started	110000
Total units to account for	150000
		Equivalent units
UNITS ACCOUNTED FOR:		Transferred in	Materials	Conversion
Units transferred out	120000	120000	120000	120000
Units in ending work in process	30000	30000	30000	18000
Total units accounted for	150000	150000	150000	138000
NOTE:
Under the weighted average method, the beginning work in process is considered as introduced and
completed during the period; ie: 100% of the beginning WIP is completed during the period.
Thus, the equivalent units for begnning wip will be 100% for materials and conversion.
In this problem the 120000 units completed and transferred would include 100% for beginning wip and
100% for units introduced and completed during the period.
Units transferred out will be UNITS ACCOUNTED FOR - ENDING WIP UNITS = 150000-30000 = 120000.
These units will have 100% weightage. Hence, equivalent units would be 120000 for transferred in,
materials and labor.
But ending WIP will have only 30000*60% for conversion. For transferred in and materials it will be 100%
as they are added in the beginning.