Question

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 80,000
Units in process, July 31, 80% complete* 15,000
* With respect to conversion costs.

Required:
a. Prepare a physical flow schedule for July.
b. Prepare an equivalent units schedule for July using the FIFO method.

Answer 1

Physical Flow units 105000 ounces

FIFO Equivalent Units = Materials 85000 and Conversion 86000 ounces

Step-by-step explanation:

Jackson Products

Physical flow Schedule

For the month of July.

Units to account For

BWIP 60 % complete 10,000

Units Started 95000

Total units to account for 105000

Units accounted For

Units completed and Transferred out 80,000

BWIP 10000

EWIP 15000

Total Units accounted For 105,000

Jackson Products

Equivalent Units Schedule

For the month of July.

Particulars Units % OF Completion Equivalent Units

Materials Conversion Materials Conversion

Units Started &

Completed 100 100 80000 80000

EWIP 100 80 15000 12000

Less Beg. WIP 100 60 10,000 6000

Total Equivalent Units 85000 86000

The difference between Weighted and FIFO Equivalent units is that FIFO accounts only for the current units . Thus the beginning inventory is deducted from the Total of completed and ending units.

Step-by-step explanation: