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Problem 11 (100 points): Productio Springville Company produces a pro Cooking. In the Blending Departmen other manufacturing inputs areas Production Report under Process Costing: ces a product that passes through two departments: Blending and Department, all materials are added at the beginning of the process. All puts are added uniformly. The following information pertains to the Blending Department for February, 2014: a) BWIP, February 1: 100.000 poun related costs: "Y 100,000 pounds, 40N complete with respect to conversion costs with these Material: $20,000 Labor $10,000, Overhead: $30,000 b) EWIP, February 28: 50.000 pounds so complete with respect to conversion costs. Units completed and transferred out: 370.000 pounds. The following costs were added during the month: Material: $211,000 Labor $100,000 Overhead: $270,000 quired Questions: Under the Weighted Average Method (50 points): Prepare a physical flow schedule (10 points): Compute the equivalent units (10 points) Compute the unit costs (10 points) Present the valuation of inventories (10 points) 15. Prepare cost reconciliation (10 points). 12 13 Her the FIFO Method (50 points): 21 Prepare a physical flow schedule (10 points); Compute the equivalent units (10 points) Compute the unit costs with two decimals (10 points) 24. Present the valorization of inventories (10 points) Prepare cost reconciliation (10 points).

Answer 1

	WEIGHTED AVERAGE METHOD:
1]	Physical flow schedule:
	Units to account for:
	Units in BWIP		100000
	Units started		320000
	Total units to account for		420000
	Units accounted for:
	Units completed and transferred:
	Started and completed	270000
	From BWIP	100000	370000
	Units in EWIP		50000
	Total units accounted for		420000
2]	Schedule of equivalent units:	Materials	Conversion	Total
	Units completed	370000	370000
	Units in EWIP:
	=50000*100% =	50000	0
	=50000*60% =	0	30000
	Equivalent units of output	420000	400000
3]	Cost per equivalent unit:
	Cost in BWIP	$            20,000	$             40,000	$          60,000
	Costs added during the month	$        2,11,000	$         3,70,000	$      5,81,000
	Total costs for equivalent units	$        2,31,000	$         4,10,000	$      6,41,000
	Equivalent units of output	420000	400000
	Cost per equivalent unit	$              0.550	$               1.025	$            1.575
4]	Cost of goods transferred out	$        2,03,500	$         3,79,250	$      5,82,750
	Cost of EWIP	$            27,500	$             30,750	$          58,250
5]	Cost reconciliation:
	Costs to account for:
	BWIP			$          60,000
	Incurred during the period			$      5,81,000
	Total costs to account for			$      6,41,000
	Costs accounted for:
	Goods transferred out			$      5,82,750
	EWIP			$          58,250
	Total costs accounted for			$      6,41,000
	FIFO METHOD:
1]	Physical flow schedule:
	Units to account for:
	Units in BWIP		100000
	Units started		320000
	Total units to account for		420000
	Units accounted for:
	Units completed and transferred:
	Started and completed	270000
	From BWIP	100000	370000
	Units in EWIP		50000
	Total units accounted for		420000
2]	Schedule of equivalent units:	Materials	Conversion	Total
	Units started and completed	270000	270000
	Units in BWIP	0	60000
	Units in EWIP:
	=50000*100% =	50000	0
	=50000*60% =	0	30000
	Equivalent units of output	320000	360000
3]	Cost per equivalent unit:
	Costs added during the month	$        2,11,000	$         3,70,000	$      5,81,000
	Total costs for equivalent units	$        2,11,000	$         3,70,000	$      5,81,000
	Equivalent units of output	320000	360000
	Cost per equivalent unit	$              0.659	$               1.028	$            1.687
4]	Cost of goods transferred out:
	From BWIP:
	Cost in BWIP	$            20,000	$             40,000	$          60,000
	Cost to complete	$                    -	$             61,680	$          61,680
	Total cost of BWIP completed and transferred out	$            20,000	$         1,01,680	$      1,21,680
	Cost of units introduced, completed and transferred out	$        1,77,930	$         2,77,560	$      4,55,490
	Total costs of units completed and transferred out	$        1,97,930	$         3,79,240	$      5,77,170
	Cost of EWIP	$            32,950	$             30,840	$          63,790
5]	Cost reconciliation:
	Costs to account for:
	BWIP			$          60,000
	Incurred during the period			$      5,81,000
	Total costs to account for			$      6,41,000
	Costs accounted for:
	Goods transferred out			$      5,77,170
	EWIP			$          63,790
	Total costs accounted for			$      6,40,960
				Difference of $40 due to round off of cost of EUP