Chornerstone 6-4

Production :
Units in process, July 1,
20,000 litres
75% complete
Units completed and
50,000 litres
transferred out
Units in process, July 31, 10,000 litres

Costs:
Work in process, July 1 3,525
Costs added during July 10,125

Required:
1. Calculate an output measure for July
2. Assign costs to units transferred out and EWIP using weighted average method
3. Prepare a physical flow schedule
4. Prepare a production report

1. Calculate an output measure for July

Units complete in this
= BWIP + Units started & completed Units started & completed:
period
= 20.000 + 30.000
= 50,000

Add equivalents units in

EWIP
Equivalents units
manufactured this period
= Units completed + EWIP EWIP
= 50.000 + 10.000 (25% complete)
= 52,500

Compute units cost

Work in process, July 1 3,525
Cost added during July 10,125
Total costs assigned 13,650

Unit cost = Total cost / Equivalent units

= 13.650 / 52.500
= 0.26

2. Assign costs to units transferred out and EWIP using weighted average method
Transferred out (50.000
units x $0.26) 13,000
EWIP (2.500 equiv.units
x $0.26) 650
Total cost assigned 13,650 (All the manufactured cost has been assigned)

3. Prepare a physical flow schedule

Unitsstarted and compleetd = Units completed - BWIP

= 50.000 - 20.000
= 30,000

Units started = Units started and completed + EWIP

= 30.000 + 10.000
= 40,000

Physical flow schedule

Units to account for:

Units in beginning work
in process (75%
ncomplete) 20,000
Units started during the period 40,000
Total unit to account for 60,000

Physical flow schedule continued

Units accounted for:

Units completed and transferred out
Started and completed 30,000
From beginning work in process 20,000 50,000
Units in ending work in process (25% complete)
10,000
Total units accounted for 60,000

(All the units "to be accounted for" have been "accounted for")

4. Prepare a production report

Healhblend Company
Picking Department
Production Report for July 2011
 Unit information

Physical Flow
Units to acount for:
Units in BWIP 20,000
Units started 40,000
Total units to account for 60,000

Equivalent Units
Units completed 50,000
Units in EWIP 2,500
Total equivalent units 52,500

Cost Information

Cost to accounted for:

Beginning work in process 3,525
Incurred during the period 10,125
Total costs to accounted for 13,650

Cost per equivalent per unit 0.26

Transferred
out
Cost to accounted for:
Goods transferred out 13,000
Goods in EWIP -
Total costs accounted for 13,000
nits started & completed: Complete unit - BWIP
30,000
-

WIP 10.000 (25% complete)

2,500

method
y

y 2011
 Units accounted for:
Units completed 50,000
Units in EWIP 10,000
Total units accounted for 60,000

EWIP Total

- 13,000
650 650
650 13,650
Information:
Production:
Units in process, July 1, 75% complete 20,000
Units completed and transferred out 50,000
Units in process, July 31, 25% complete 10,000

Required
Prepare a physical flow schedule

Units to account for:

Units in beginning work in process (75% complete)