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* Units completed and transferred out Units in process, July 31, 80% complete* * With respect to conversion costs. 10,000 80,000 15,000

Answer 1

1)

Jackson Products
Physical Flow Schedule
For the Month of July
Units to account for:
Units, beginning work in process (60% complete)		10000
Units started during July (95000-10000)		85000
Total units to account for		95000
Units accounted for:
Units completed and transferred out:
Started and completed (80000-10000)	70000
From beginning work in process	10000	80000
Units in ending work in process (80% complete)		15000
Total units accounted for		95000

2)

Jackson Products
Equivalent Units Schedule
	Direct Materials	Conversion Costs
Units completed	80000	80000
Add: Units in ending work in process*Percentage complete:
15000*100%	15000	-
15000*80%	-	12000
Equivalent units of output	95000	92000

3)

	Direct materials	Conversion costs
Equivalent units of output using weighted average method	95000	92000
Less: Beginning work in process	(10000*100%)= 10000	(10000*60%)= 6000
Equivalent units of output using FIFO method	85000	86000