Chapter 6 Homework

Weighted Average Method, FIFO Method, Physical Flow, Equivalent Units Middelton Company manufactures a product that passes through two processes: Fabrication and Assembly. The following information was abtained for the Fabrication Department for October: a. All materials are added at the beginning of the process. b. Beginning work in process had 125,000 units, 40 percent complete with respect to conversion costs. c. Ending work in process had 25,000 units, 20 percent complete with respect to conversion costs. d. Started in process, 175,000 units. Required: 1. Prepare a physical flow schedule. Middelton Company ? Physical Flow Schedule Units to account for: Units, beginning work in process Units started 125,000 175,000 300,000 Tatal units to account for Units accounted for Units completed and transferred out: Started and completed From beginning work in process Units, ending work in process 125,000 x 150,000 X 25,000 Total units accounted for 300,000 Fresh Check My Work 1. The physical flow schedule traces the units in process regardless of their stage of completion and provides the information needed for preparing the equivalent units schedule. 2. Compute equivalent units using the weighted average method. Weighted average method: Equivalent Units Direct Materials 300,000 Conversion Costs 280,000 3. Compute equivalent units using the FIFO method. FIFO method: Equivalent Units Direct Materials 175,000 230,000 Conversion Costs