AutoSave OFF ABS JB ABC Home Insert Draw Design Layout G X Calibri 11 A A Paste B I U ab X A W2-06 B FLORIDA 2nd depts - Saved to my Mac References Aa Mailings Review View Acrobat Table Design A Layout Tell me AaBbCcDdEe AaBbCcDdEe AaBbCcD AaBbCcDd > Normal No Spacing Heading 1 Heading 2 Page 2 of 2 4 of 570 words English (United States) In the Packing department, however, we have several different materials and, therefore, materials are added at different parts of the process. (The percentage of completion amounts are given, so that you don't have to figure out what materials are added where.) Now consider the company's 2nd department, the Packing Department. The following information is related to production in the Packing Department for February, 2013 (the same month): + Unit Information - Packing Department Units to account for Beginning work in process (60% materials, 50% as to conversion) Transferred from Mixing Ending work in process (80% materials, 60% conversion) 14,500 ? 35,000 Cost Information Beginning work in process Current Material $925 83,900 $84,825 Conversion $175 25,645 $25,820 Transferred In Total $3,410 $4,510 ? ? ? ? Required: For requirements 1 and 2, assume that all units produced were "good" units and met the company's quality-control standards. In doing your computations, allow Excel to make complete computations, but round ALL equivalent unit costs to 4 decimal places for display purposes only. 1. WHY would a company choose to use the Weighted Average method instead of the FIFO Method? Which is more accurate? 2. Prepare a production report for the Packing Department 3. Prepare the journal entry to record the completion of units in the both the Mixing and Packing Departments. 4. Thinking about the 2 methods. It's clear that the FIFO method is more accurate as it includes ONLY the work done and the costs incurred in the CURRENT period. So why in the world would anyone want to use the weighted average method? 5. Let's say a company kept little or no work-in-process inventories. What could we say about the resulting unit costs arrived at using the FIFO and WA methods? 6. As we know, the WA method combines some work done in the previous period with work for the current period (thus averaging). What if the unit costs of materials and conversion didn't change from period to period? In other words, the input costs from last period were exactly the same. What would happen to our unit costs if we averaged last period's and this period's? 7. What would happen to our unit cost computations in the packing department if completion status of the BWIP changed? 8. What would be the equivalent units of materials if the materials were all added at the end of the process instead of the percentages shown above? 9. What would the equivalent units of materials be if we had a 2nd material that was added at the 70% mark? 10. What would happen to our unit cost computations in the packing department if completion status of the EWIP was 40% instead of 60% (in words, not numbers)? 11. Based on #10 ... if I asked you for a "formula" to figure out the equivalent unit cost of conversion under the weighted average method, what would it be? Styles Pane Share Comments Dictate Sensitivity Create and Share Request Adobe PDF Signatures Focus 83%