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	5,000
Units completed	4,000
Units, EWIP	1,000	(40 percent complete)
Production Costs:	$132,000

Step 1: Prepare a physical flow schedule:

Units to Account for:

Units in BWIP
Units started
Total units to account for
Units accounted for:
Units Completed:
From: BWIP
Started and completed
Units in EWIP
Total units accounted for

Step 2: Prepare an equivalent units schedule:

Units Completed
Units in EWIP Fraction complete
Equivalent units

Step 3: Calculate the unit cost:

$ ???