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	5,840
Units completed	4,880
Units, EWIP	960	(50 percent complete)
Production Costs	$150,080

Prepare a physical flow schedule:

Physical Flow Schedule
Units to Account for:
- Select your answer -Units in BWIPUnits in EWIPItem 1
Units started
Total units to account for
Units accounted for:
Units Completed:
From: - Select your answer -BWIPEWIPItem 5
Started and completed
Units in - Select your answer -BWIPEWIPItem 9
Total units accounted for

Prepare an equivalent units schedule:

Equivalent Units Schedule
- Select your answer -Units to Account ForUnits CompletedItem 12
+ Units in EWIP Fraction Complete
Equivalent Units

Calculate the unit cost:

Unit Cost	=	Total Production Costs		Equivalent Units
$	=	$

Scenario 2: For the CBC blood tests, Craig Laboratories adds materials at the beginning of the process. Conversion inputs are added uniformly. For April, EWIP is 20 percent complete with respect to conversion costs. The following information is provided for April:

Physical Flow Schedule
Units to Account for:
- Select your answer -Units in BWIPUnits in EWIPItem 19		0
Units started		5,220
Total units to account for		5,220
Units accounted for:
Units Completed:
From: - Select your answer -BWIPEWIPItem 20	0
Started and completed	3,630	3,630
Units in - Select your answer -BWIPEWIPItem 21		1,590
Total units accounted for		5,220

Cost of inputs:
Materials	$120,060
Conversion	47,376

Prepare an equivalent units schedule:

	Direct Materials	Conversion Costs
- Select your answer -Units to Account ForUnits CompletedItem 22
+ Units in EWIP Fraction complete
Equivalent Units

Calculate the unit cost:

Unit Cost	=	(Direct Materials Cost Equivalent Units of Materials)	+	(Conversion Cost Equivalent Units of Conversion)
$	=	($ )	+	($ )

Or

Unit Cost	=	Unit Materials Cost	+	Unit Conversion Cost
$	=	$	+	$