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 FIFO method.
3. What if 60 percent of the materials were added at the beginning of the process and 40 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?