Question
Apply the Concepts: Physical Flow, Equivalent Units, and Unit Costs Scenario 1 : All inputs are added uniformly. Craig Laboratories had the following data for
Apply the Concepts: Physical Flow, Equivalent Units, and Unit Costs
Scenario 1: All inputs are added uniformly. Craig Laboratories had the following data for its CBC test for March:
Units, BWIP | 0 | |
Units started | 5,840 | |
Units completed | 4,880 | |
Units, EWIP | 960 | (50 percent complete) |
Production Costs | $150,080 |
Prepare a physical flow schedule:
Physical Flow Schedule | ||
---|---|---|
Units to Account for: | ||
- Select your answer -Units in BWIP or EWIP | ||
Units started | ||
Total units to account for | ||
Units accounted for: | ||
Units Completed: | ||
From: - Select your answer -BWIP or EWIP | ||
Started and completed | ||
Units in - Select your answer -BWIP or EWIP | ||
Total units accounted for |
Prepare an equivalent units schedule:
Equivalent Units Schedule | |
---|---|
- Select your answer -Units to Account For or Units Completed | |
+ Units in EWIP Fraction Complete | |
Equivalent Units |
Calculate the unit cost:
Unit Cost | = | Total Production Costs | Equivalent Units | |
$ | = | $ |
Scenario 2: For the CBC blood tests, Craig Laboratories adds materials at the beginning of the process. Conversion inputs are added uniformly. For April, EWIP is 20 percent complete with respect to conversion costs. The following information is provided for April:
Physical Flow Schedule | ||
---|---|---|
Units to Account for: | ||
- Select your answer -Units in BWIP or EWIP | 0 | |
Units started | 5,220 | |
Total units to account for | 5,220 | |
Units accounted for: | ||
Units Completed: | ||
From: - Select your answer -BWIP or WIP | 0 | |
Started and completed | 3,630 | 3,630 |
Units in - Select your answer -BWIP or EWIP | 1,590 | |
Total units accounted for | 5,220 |
Cost of inputs: | |
Materials | $120,060 |
Conversion | 47,376 |
Prepare an equivalent units schedule:
Direct Materials | Conversion Costs | |
---|---|---|
- Select your answer -Units to Account For or Units Completed | ||
+ Units in EWIP Fraction complete | ||
Equivalent Units |
Calculate the unit cost:
Unit Cost | = | (Direct Materials Cost Equivalent Units of Materials) | + | (Conversion Cost Equivalent Units of Conversion) |
$ | = | ($ ) | + | ($ ) |
Or
Unit Cost | = | Unit Materials Cost | + | Unit Conversion Cost |
$ | = | $ | + | $ |
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