Question

Northern Washington Lumber Company grows, harvests, and processes timber for use as building lumber. The following data pertain to the company’s sawmill:

Work-in-process inventory, January 1 (direct materials: 60%, conversion: 40%)	46,400 units
Work-in-process inventory, December 31 (direct materials: 70%, conversion: 60%)	23,200 units

During the year the company started 190,000 units in production.

Required:

1. Prepare a physical flow schedule.

2. Compute the number of equivalent units of both direct materials and conversion for the year, using the weighted-average method.

Prepare a physical flow schedule.

Compute the number of equivalent units of both direct materials and conversion for the year, using the weighted-average method.

	Equivalent Units Direct materials Conversion

	Quantity Schedule (in units)          Input          Work-in-process inventory Units started Total units to account for Output

Answer 1

Quantity Schedule (in units)
Input
work in process inventory				46400
units started				190000
Total units to account for				236400
output
units completed (balancing figure)				213200
WIP inventory				23200
Total units to accounted for				236400
2)			Material	conversion
unit completed			213200	213200
WIP inventory at the end			16240	13920
(23200*70%), (23200*60%)
equivalent units			229440	227120
			equivalent units
Direct material			229440
Conversion			227120

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