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5:55 Instagram Done 6 of 7 980 0 howl Chapter 6 Process Costing 319 3. CONCEPTUAL CONNECTION Cassien had just finished implementing a series of measures designed to red ed to reduce the unit cost to $2.00 and was assured that this had been achieved and should be realized for June's production. Yet, upon seeing the unit cost for June, the president of the company was disappointed. Can you explain why the full effect problem? of the cost reductions may not show up in June? What can you suggest to overcome this Exercise 6-46 Weighted Average Method, Unit Costs, Valuing Inventories Byford Inc. produces a product the oduct that passes through two processes. During November, equiva- OBJECTIVE 3 lent units were calculated using the weighted average method: Units completed Add: Units in EWIP x Fraction complete (60,000 x 40%) 196,000 Equivalent units of output (weighted average) 24,000 Less: Units in BWIP x Fraction complete (50,0()0 x 70%) 220,000 35,000 Equivalent units of ourput (FIFO) 185.000 The costs that Byford had to account for during the month of November were as follows: BWIP $ 107 000 Costs added 993,000 Total $1,100,000 Required: 1. Using the weighted average method, determine unic cost. 2. Under the weighted average method, what is the cotal cost of units transferred out? What is the cost assigned to units in ending inventory? 3. CONCEPTUAL CONNECTION Bill Johnson, the manager of Byford, is considering switching from weighted average to FIFO, Explain the key differences between the two pproaches and make a recommendation to Bill about which method should be used. Exercise 6-47 Physical Flow Schedule OBJECTIVE 3 The following information was obtained for the grinding department of Harlan Company for May a. BWIP had 91,500 units, 30% complete with respect to manufacturing costs. b. EWIP had 25,200 units, 25% complete with respect to manufacturing costs. EXCEL c. Started 99,000 units in May. Required: Prepare a physical flow schedule. Exercise 6-48 Physical Flow Schedule OBJECTIVE - 3 Nelrok Company manufactures fertilizer. Department 1 mixes the chemicals required for the fertilizer. The following data are for the year; BWIP (40% complete) 25.000 Units started 142,500 Units in EWIP (60% complete) 35,000 Required: Prepare a physical flow schedule. E