Subject: Business / Accounting
QuestionWeighted Average Method, FIFO Method, Physical Flow, Equivalent UnitsHeap Company manufactures a product that passes through two processes: Fabrication and Assembly. The following information was obtained for the Fabrication Department for September:All materials are added at the beginning of the process.
Beginning work in process had 83,200 units, 30 percent complete with respect to conversion costs.
Ending work in process had 16,900 units, 40 percent complete with respect to conversion costs.
Started in process, 95,500 units.Required:1.Prepare a physical flow schedule.Heap Company
Physical Flow Schedule
Units to account for:Total units to account forUnits accounted for:Units completed and transferred out:Total units accounted for2.Compute equivalent units using the weighted average method.
Weighted average method: Equivalent Units
Conversion Costs3.Compute equivalent units using the FIFO method.
FIFO method: Equivalent Units