Question: ( b) BH Sauce uses a process costing system to determine its products cost. The last of the three processes is packaging. The Packaging Department
(b)
BH Sauce uses a process costing system to determine its products cost. The last of the three processes is packaging. The Packaging Department reported the following information for the month of July:
| BH Sauce Packaging Department Month Ended July 31 Flow of Production | Equivalent Units | |||
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| Physical Units | Transferred In | Direct Materials | Conversion Costs |
| Units to account for: |
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| Beginning work in process, July 1 | 39,000 |
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| Plus: Transferred in during July | 236,000 |
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| Total physical units to account for | (a) |
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| Units accounted for: |
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| Completed and transferred out during July | (b) | (d) | (g) | (j) |
| Plus: Ending work in process, July 31 | 25,000 | (e) | (h) | (k) |
| Total physical units accounted for | (c) |
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| Total equivalent units |
| (f) | (i) | (l) |
The united in ending work in process inventory were 85% complete with respect to direct materials but only 65% complete with respect to conversion.
Requirement
Summarize the flow of physical units and compute output in terms of equivalent units in order to arrive at the missing figures (a) through (I).
(c)
Process costing is like rolling a snowball into a snowman. Do you agree with this statement? If you agree, explain why (maximum 100 words).
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