Scenario: Dormir produces a liquid herbal sleep remedy. Production begins in the Blending Department. After blending is completed, output (measured in ounces) is transferred to the Bottling Department. In the bottling department, the liquid is strained and then (the very last step) is placed in 8 ounce bottles. During the month of June, the Blending Department transferred out 36,000 ounces of liquid at a cost of $7,920. The Bottling Department had 80 bottles in process at the end of May, 75 percent complete with respect to conversion costs. At the end of June, Bottling had 100 bottles in process, 50 percent complete with respect to conversion cost.

Complete the following physical flow schedule:

Units to Account for:
Units in BWIP    80
Units started 45
Total units to account for 4580
Units accounted for:
Units Completed:
From: BWIP 80
Started and completed 4400 4480
Units in EWIP 100
Total units accounted for 4580

The table below illustrates the adjustment for calculating equivalent units for departments that receive transferred-in goods for either FIFO or weighted average. Complete the table, rounding to the nearest whole number. If an amount box does not require an entry, leave it blank or enter "0".

FIFO

WEIGHTED AVERAGE

Transferred-in Materials

Direct Materials (bottles)

Conversion

Transferred-in Materials

Direct Materials (bottles)

Conversion

Units Completed

-

-

-

?

?

?

Units Started and Completed

?

?

?

-

-

-

Units in BWIP × Fraction to Complete

?

?

?

-

-

-

Units in EWIP × Fraction Complete

?

?

?

?

?

?

Equivalent Units

?

?

?

?

?

?

Assuming the cost of transferred-in materials in beginning work in process is $110, calculate the unit cost for transferred in materials per bottle for the month of June (round to the nearest cent):

FIFO ?
Weighted average ? Please fill in question marks for FIFO and Weighted average

Answer rating: 100% (QA)

Solution Units to Account for Units in BWIP 80 Units started 36008 4500 ... View the full answer