Weighted Average Method, FIFO Method, Physical Flow, Equivalent Units
Heap Company manufactures a product that passes through two processes: Fabrication and Assembly. The following information was obtained for the Fabrication Department for September:
Required:
1. Prepare a physical flow schedule.
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Heap Company |
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Physical Flow Schedule |
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Units to account for: |
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Started & Completed |
Or Units, beginning WIP |
Or Units, ending WIP |
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Units completed |
Or Units, ending WIP |
Or Units started |
Or Units transferred out |
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Total units to account for |
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Units accounted for: |
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Units completed and transferred out: |
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Started & completed |
Or Units completed |
Or Units started |
Or Units transferred out |
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From beginning WIP |
Or Units completed |
Or Units started |
Or Units transferred out |
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Units completed |
Or Units, ending WIP |
Or Units started |
Or Units transferred out |
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Total units accounted for |
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2. Compute equivalent units using the weighted average method.
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Weighted average method: |
Equivalent Units |
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Direct Materials |
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Conversion Costs |
3. Compute equivalent units using the FIFO method.
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FIFO method: |
Equivalent Units |
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Direct Materials |
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Conversion Costs |
1.
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Heap Company Physical Flow Schedule |
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| Units to account for: | |
| Units beginning WIP | 81,400 |
| Units started | 110,000 |
| Total units to account for | 191,400 |
| Units accounted for: | |
| Units completed and transferred out: | |
| Units started (191,400-12,100-81,400) | 97,900 |
| From beginning WIP | 81,400 |
| Units ending WIP | 12,100 |
| Total units accounted for | 191,400 |
2.
| Equivalent Units | |||
| Physical units | Direct material | Conversion | |
| Units completed and transferred out | 179,300 | 179,300 | 179,300 |
| Units, ending WIP | 12,100 | 12,100 | 3,025 |
| Total | 191,400 | 191,400 | 182,325 |
| Weighted average method | Equivalent units |
| Direct materials | 191,400 |
| Conversion costs | 182,325 |
3.
| Equivalent Units | |||
| Physical units | Direct material | Conversion | |
| Units,beginning WIP | 81,400 | 0 | 56,980 |
| Units started and completed (179,300-81,400) | 97,900 | 97,900 | 97,900 |
| Units,ending WIP | 12,100 | 12,100 | 3,025 |
| Total | 191,400 | 110,000 | 157,905 |
| FIFO Method | Equivalent units |
| Direct material | 110,000 |
| Conversion costs | 157,905 |
Weighted Average Method, FIFO Method, Physical Flow, Equivalent Units Heap Company manufactures a product that passes...
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