Basic Flows, Equivalent UnitsThayn Company produces an arthritis medication that passes through two departments: mixing and tableting. Thayn uses the weighted average method. Data for February for mixing are as follows: BWIP waszero; EWIP had 36,000 units, 50% complete; and 470,000 units were started. Tableting's data for February are as follows: BWIP was 24,000 units, 20% complete; and 12,000 units were in EWIP, 40%complete.Required:1. For Mixing, calculate the (a) number of units transferred to Tableting, and (b) equivalent units of production.a. Units transferred to Tabletingb. Equivalent units of production483,200 X units452,000units2. For Tableting, calculate the number of units transferred out to Finished Goods.488,000 X units3. Conceptual Connection: Suppose that the units in the mixing department are measured in ounces, while the units in Tableting are measured in bottles of 100 tablets, with a total weight of eight ounces(excluding the bottle).Now, repeat Requirement 2 using this approach.Units transferred out 60,400 X units

Let's take a closer look at the computations. 1a. Units transferred to tableting: The ending work in…

Answered: Basic Flows, Equivalent Units Thayn…

Cornerstones of Cost Management (Cornerstones Series)

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Author:Don R. Hansen, Maryanne M. Mowen

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Chapter6: Process Costing

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Problem 40P: Jacson Company produces two brands of a popular pain medication: regular strength and extra...

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Thayn Company produces an arthritis medication that passes through two departments: mixing and tableting. Thayn uses the weighted average method. Data for February for mixing are as follows: BWIP was zero; EWIP had 36,000 units, 50% complete; and 440,000 units were started. Tableting's data for February are as follows: BWIP was 26,000 units, 20% complete; and 12,000 units were in EWIP, 40% complete. Required: 1. For Mixing, calculate the (a) number of units transferred to Tableting, and (b) equivalent units of production. a. Units transferred to Tableting 404,000 V units b. Equivalent units of production 422,000 V units 2. For Tableting, calculate the number of units transferred out to Finished Goods. 418,000 V units 3. Conceptual Connection: Suppose that the units in the mixing department are measured in ounces, while the units in Tableting are measured in bottles of 100 tablets, with a total weight of eight ounces (excluding the bottle). Now, repeat Requirement 2 using this approach.…
Thayn Company produces an arthritis medication that passes through two departments: mixing and tableting. Thayn uses the weighted average method. Data for February for mixing are as follows: BWIP was zero; EWIP had 36,000 units, 50% complete; and 490,000 units were started. Tableting's data for February are as follows: BWIP was 26,000 units, 20% complete; and 12,000 units were in EWIP, 40% complete. 1. For Mixing, calculate the number of units transferred to Tableting, and equivalent units of production. Line Item Description Units Units transferred to Tableting _______________ Equivalent units of production _______________ 2. For Tableting, calculate the number of units transferred out to Finished Goods._____________________ 3. Conceptual Connection: Suppose that the units in the mixing department are measured in ounces, while the units in Tableting are measured in bottles of 100 tablets, with a total weight of eight…
Jacson Company produces two brands of a popular pain medication: regular strength and extra strength. Regular strength is produced in tablet form, and extra strength is produced in capsule form. All direct materials needed for each batch are requisitioned at the start. The work orders for two batches of the products are shown below, along with some associated cost information: In the Mixing Department, conversion costs are applied on the basis of direct labor hours. Budgeted conversion costs for the department for the year were 60,000 for direct labor and 190,000 for overhead. Budgeted direct labor hours were 5,000. It takes one minute of labor time to mix the ingredients needed for a 100-unit bottle (for either product). In the Bottling Department, conversion costs are applied on the basis of machine hours. Budgeted conversion costs for the department for the year were 400,000. Budgeted machine hours were 20,000. It takes one-half minute of machine time to fill a bottle of 100 units. Required: 1. What are the conversion costs applied in the Mixing Department for each batch? The Bottling Department? 2. Calculate the cost per bottle for the regular and extra strength pain medications. 3. Prepare the journal entries that record the costs of the 12,000 regular strength batch as it moves through the various operations. 4. Suppose that the direct materials are requisitioned by each department as needed for a batch. For the 12,000 regular strength batch, direct materials are requisitioned for the Mixing and Bottling departments. Assume that the amount of cost is split evenly between the two departments. How will this change the journal entries made in Requirement 3?
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 60,900 gallons in beginning inventory (with transferred-in costs of $283,000) and completed 211,000 gallons during the month. Further, the mixing department completed and transferred out 295,000 gallons at a cost of $649,000 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 Units started during the period Total units to account for Units completed and transferred out: Units started and completed Units completed from beginning work in process Units in ending work in process Total units accounted for 2. Calculate equivalent units for the transferred-in category. equivalent units 3. Calculate the unit cost for the transferred-in category. If required,…
Deshery Company makes small metal containers. The company began October with 300 containers in process that were 35 percent complete as to material and 45 percent complete as to conversion costs. During the month, 6,000 containers were started. At month end, 1,900 containers were still in process (40 percent complete as to material and 75 percent complete as to conversion costs). Using the weighted average method, what are the equivalent units for conversion costs? * a. 4,265b. 5,590c. 5,825d. 6,300
Kelley paint company uses the weighted average method to account for costs of production. Kelley manufactures base paint in two separate departments - Mixing and Packaging. The following information is for the mixing Department for the Month of March. A total of 40,000 units were in beginning WIP Inventory. All were completed and transferred out during March. A total of 70,000 units were started durung March. Of the 70,000 units started, 20,000 units were completed and transferred out to the Packaging Department (100% complete with respect to direct materials, direct labor and overhead), and 50,000 units were partially completed and remained in ending WIP Inventory on March 31 (90% complete for direct materials, 70% complete for direct labor, and 30% complete for overhead, which is applied based on machine hours). Cost in beginning WIP Inventory totaled $229,000 ($98,000 in direct materials + $41,000 in direct labor + $90,000 in overhead). Cost incurred during March totaled…
Aztec Inc. produces soft drinks. Mixing is the first department, and its output is measured in gallons. Aztec uses the FIFO method. All manufacturing costs are added uniformly. For July, the mixing department provided the following information: Production: Units in process, July 1, 40% complete 20,000 gallons Units completed and transferred out 134,000 gallons Units in process, July 31, 55% complete 20,000 gallons Costs: Work in process, July 1 $40,000 Costs added during July 369,900 Required: Prepare a production report. Aztec Inc. Mixing Department Production Report For the Month of July (FIFO Method) Unit Information Physical flow: Units to account for: Units Units in beginning WIP fill in the blank 1 Units started fill in the blank 2 Total units to account for fill in the blank 3 Units to account for: Units Units started and completed fill in the blank 4 From beginning WIP fill in the blank 5 Units in ending WIP…
Aztec Inc. produces soft drinks. Mixing is the first department, and its output is measured in gallons. Aztec uses the FIFO method. All manufacturing costs are added uniformly. For July, the mixing department provided the following information: Production: Units in process, July 1, 40% complete 20,000 gallons Units completed and transferred out 135,000 gallons Units in process, July 31, 45% complete 24,000 gallons Costs: Work in process, July 1 $40,000 Costs added during July 372,060 Required: Prepare a production report. Aztec Inc. Mixing Department Production Report For the Month of July (FIFO Method) Unit Information Physical flow: Units to account for: Units Units in beginning WIP Units started Total units to account for Units to account for: Units Units started and completed
Dormir produces a liquid herbal sleep remedy. Production begins in the Blending Department. All materials are added at the beginning of the blending process. Output is measured in ounces. The production data for June are as follows:Production:Units in process, June 1, 70% complete*6,000Units completed and transferred out36,000Units in process, June 30, 40% complete*12,000* With respect to conversion cost Complete the physical flow schedule given below. There are a number of useful relationships. For example, Units Started and Completed = Units Completed ‒ Units in BWIP and Units Started = Units Completed ‒ Units in EWIP Units to Account for: Units in BWIP Units started Total units to account for Units accounted for: Units Completed: From: BWIP Started and completed Units in BWIP Total units accounted for Prepare the Equivalent Unit Schedules for FIFO and Weighted Average by completing the Table below. Since inputs are…
Comfort chair company manufacturers a standard recliner. During February, the firm's Assembly Department started production of 73,200 chairs. During the month, the firm completed 78,800 chairs, and transferred them to the Finishing Department. The firm ended the month with 9,900 chairs in ending inventory. There were 15,500 chairs in beginning inventory. All direct materials costs are added at the beginning of the production cycle and conversion costs are added uniformly throughout the production process. The FIFO method of process costing is used by Comfort. Beginning work in process was 30% complete as to conversion costs, while ending work in process was 85% complete as to conversion costs. Beginning inventory: Direct materials Conversion costs $24,900 $35,900 Manufacturing costs added during the accounting period: Direct materials Conversion costs A. 83,100 B. 63,300 C. 73,200 O D. 78,800 $168,600 $278,300 How many of the units that were started and completed during February?
Fluffy manufactures chocolate syrup in three departments: Cooking, Mixing,and Bottling. Fluffy uses the weighted average method. The following are cost andproduction data for the cooking department for August (Note: Assume that units aremeasured in gallons):Production:Units in process, August 1, 60% complete 20,000Units completed and transferred out 50,000Units in process, August 30, 20% complete 10,000Costs:WIP, August 1 RM 93,600Costs added during August RM 314,600Required:Prepare a production report for the cooking department.
Fleming, Fleming, and Johnson a local CPA firm, provides the following data for individual returns processed for march (out put is measured in number of turns): Units, begining work in process - units started 6,000 units completed 5,000 units, ending work in process (50% completed) total production cost $5,500 1. prepare a physical flow schedule. 2. prepare an equivalent units schedule? Explain why output is measured in equivlent units. 3. what if EWIP is 80% completed? how would this change affect the physical flow schedule? the equivalent units?

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