Seved Help Save & Exit Sub Check my wor Exercise 4-19 Physical Flow and Equivale

Question

Seved Help Save & Exit Sub Check my wor Exercise 4-19 Physical Flow and Equivalent Units; Weighted-Average (LO 4-1, 4-3) The Evanston plant of Fit-for-Life Foods Corporation produces low-fat salad dressing. The following data pertain to the year just ended Percentage of Completion Direct Material Conversion Units 80% 708 50 20 Work in process, January l 46,000 1lb Work in process, December 31 40,00o 1b. During the year, the company started 150,000 pounds of material in production Required: Prepare a schedule analyzing the physical flow of units and computing the equivalent units of both direct material and conversion for the year. Use weighted-average process costing. CALCULAT?ON OF EQUIVALENT UNITS, FIT-FOR-UFE FOODS CORPORATION Weighted-Average Method Percentage of Completion Equivalent Units Physical Direct ConversionMaterial Units Material Conversion Total units to account for

Explanation / Answer

Solution:-

Opening WIP

units

Units introduced&

complete(150000-40000)

Note:- In weigted avg method, we are not able to separate opening WIP items. Hence we are taking in 100% completion with units introduced and completed during the year

Physical units Direct material completion %age Conversion completion %age Direct Material Equivalent unis Conversion equivalent units

Opening WIP

units

46000 100% 100% 46000 46000

Units introduced&

complete(150000-40000)

110000 100% 100% 110000 110000 closing WIP units 40000 70% 20% 28000 8000 Total equivalent units 184000 164000

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