Question

Hello, I was only able to get this problem partially correct. If someone could explain how to correctly complete the portion I was unable to solve, that would be great.

Thanks,

Transferred-In Cost Powers Inc. produces a protein drink. The product is sold by the gallon. The company has two departments: Mixing and Bottling. For August, the bottling department had 56,100 gallons in beginning inventory (with transferred-in costs of $283,000) and completed 210,000 gallons during the month. Further, the mixing department completed and transferred out 203,000 gallons at a cost of $625,000 in August. Required: 1. Prepare a physical flow schedule for the bottling department. Powers Inc. Physical Flow Schedule - Bottling Department For the Month of August Physical flow schedule: Units in beginning work in process 56,100 Units started during the period 203,000 Total units to account for 259,100 Units completed and transferred out: Units started and completed 153,900 Units completed from beginning work in process 56,100 56,100 Units in ending work in process 203,000 X Total units accounted for 259,100

Answer 1

Requirement 1

Power Inc.
Physical Flow Schedule- Bottling Department
For the month of August
Physical Flow Schedule
Units in beginning work in process		56100
Units started during the period		203000
Total to be account for		259100
Units completed and transferred out
Units started and completed	153900
Units completed from beginning work in process	56100	210000
Units in ending Work in process		49100
Total Units accounted for		259100

Requirement 2

Equivalent units for transferred in units =203,000

Requirement 3

Unit cost = $3.08

Working

STEP 1 (FIFO)
Reconciliation of Units
	Units	% already completed		% completed this period
		Mixing		Mixing
Beginning WIP	56,100	100%		0%
Units introduced	203,000
Total units to be accounted for	259,100
Completed and Transferred unit	210,000	0%		100%
Ending WIP	49,100	0%		100%

.

STEP 2 (FIFO)
Equivalent Units
	Total Units	Mixing
Units Transferred:		% completed this period	Equivalent Units
From WIP	56,100	0%	-
From units started/Introduced	153,900	100%	153,900
Total	210,000		153,900
	Total Units	Mixing
Ending WIP		% completed this period	Equivalent Units
Total	49,100	100%	49,100
Total EUP	259,100		203,000

.

	Mixing
Cost incurred in Current Period	$ 625,000
Total Equivalent Units	203,000
Cost per Equivalent Units	$ 3.08