Unit Information with BWIP, FIFO Method

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*	11,000
Units completed and transferred out	81,000
Units in process, July 31, 90% complete*	15,700
* With respect to conversion costs.

Required:

1. Prepare a physical flow schedule for July.

Jackson Products
Physical Flow Schedule
For the Month of July
Units to account for:
Units, beginning work is process (60% complete)
Units started during July
Total units to account for
Units accounted for:
Units completed and transferred out:
Started and completed
From beginning work in process
Units in ending work in process (90% complete)
Total units accounted for

Feedback

The physical flow schedule traces the units in process regardless of their stage of completion and provides the information needed for preparing the equivalent units schedule. FIFO uses only current output to calculate the current-period unit cost.

2. Prepare an equivalent units schedule for July using the FIFO method. Enter percentages as whole numbers. If an amount box does not require an entry, enter "0".

Jackson Products Equivalent Units Schedule

	Direct Materials	Conversion Costs
Units started and completed
Add: Units in beginning work in process Percentage to complete:
x %
x %
Add: Units in ending work in process Percentage complete:
x %
x %
Equivalent units of output

Feedback

FIFO treats the work (equivalent output) in BWIP as belonging to the prior period and only counts the work (equivalent output for each input) done this period as part of this periods output.

3. What if 70 percent of the materials were added at the beginning of the process and 30 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? _____equivalent units