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:
1. Prepare a physical flow schedule for July.
2. Prepare an equivalent units schedule for July using the weighted average method.
3. What if you were asked to calculate the FIFO units beginning with the weighted average equivalent units? Calculate the weighted average equivalent units by subtracting out the prior-period output found in BWIP.