Jackson Products produces a barbeque sauce using three departments: Cooking, Mixing, and Bottling. In the Cooking Department, all materials are added at the beginning of the process. Output is measured in ounces. The production data for July are as follows: Production: Units in process, July 1, 60% complete* 10,000 Units completed and transferred out 80,000 Units in process, July 31, 80% complete* 15,000 * With respect to conversion costs.

Required: Prepare a physical flow schedule for July. Prepare an equivalent units schedule for July using the FIFO method. What if 60 percent of the materials were added at the beginning of the process and 40 percent were added at the end of the process (all ingredients used are treated as the same type or category of materials)? How many equivalent units of materials would there be?

physical flow schedule is express as

Explanation:

physical flow schedule is express as

Quantities                      Physical Units in Gallons     Material    Conversion

Units to be accounted    

Work in process July 1     10,600  

(Direct Material - 100%,

Conversion Cost -70%)  

Started into production         87,800

(98,400 Units - 10600 Units)      

Total units                              98,400  

Units accounted for    

Transferred out                 83,000              83,000          83,000

Work in process, July 3115,400              15,400          10,780

(Direct Material - 100%,

Conversion Cost -90%)    

Total units accounted for      98,400               98,400           93,780

and

                                                         Material                   Conversion  

Units Both Started &                       72,400                               72,400  

Completed During July                                          

Units in Beginning WIP ×

Percentage to Complete    

Material  = 10,600  × 0%                      0  

Conversion = 10,600 × 30%                                          3180

Units in Ending WIP × Percentage Complete    

Material =  15,400  × 100%                    15400  

Conversion - 15,400 ×  90%                                                         13860  

Equivalent Unit Under FIFO Method    87,800                         89,440  

(=  72,400 + 15400 = 87,800

= 72,400 + 3180 + 13860 = 89,440)

and

                                                                                 Material  

Units Both Started & Completed During July       72,400  

Units in Beginning WIP ×

Percentage to Complete    

Material = 10,600  × 40%                                             4240  

Units in Ending WIP × Percentage Complete    

Material = 15,400  × 60%                                              9240  

Equivalent Unit Under FIFO Method                      85,880

72,400 + 4240 + 9240 = 85,880

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