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:

		fill in the blank 9e80f7fea027fa7_2
Units started		fill in the blank 9e80f7fea027fa7_3
Total units to account for		fill in the blank 9e80f7fea027fa7_4
Units accounted for:
Units Completed:
From:	fill in the blank 9e80f7fea027fa7_6
Started and completed	fill in the blank 9e80f7fea027fa7_7	fill in the blank 9e80f7fea027fa7_8
Units in		fill in the blank 9e80f7fea027fa7_10
Total units accounted for		fill in the blank 9e80f7fea027fa7_11

Step 2: Prepare an equivalent units schedule:

	fill in the blank 9e80f7fea027fa7_13
Units in EWIP Fraction complete	fill in the blank 9e80f7fea027fa7_14
Equivalent units	fill in the blank 9e80f7fea027fa7_15

Step 3: Calculate the unit cost:

$fill in the blank 9e80f7fea027fa7_16

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:

Units to Account for:

		0
Units started		6,000
Total units to account for		6,000
Units accounted for:
Units Completed:
From:	0
Started and completed	4,500	4,500
Units in		1,500
Total units accounted for		6,000

Cost of inputs:

Materials $126,000

Conversion 48,000

Step 2: Prepare an equivalent units schedule:

	Direct Materials		Conversion Costs
	fill in the blank 9e80f7fea027fa7_21		fill in the blank 9e80f7fea027fa7_22
Units in EWIP Fraction complete	fill in the blank 9e80f7fea027fa7_23		fill in the blank 9e80f7fea027fa7_24
Equivalent units	fill in the blank 9e80f7fea027fa7_25		fill in the blank 9e80f7fea027fa7_26

Step 3: Calculate the unit cost:

$fill in the blank 9e80f7fea027fa7_27