M2Q6

Weighted Average Method, FIFO Method, Physical Flow, Equivalent Units Middelton Company manufoctures a product that passes through two processes: Fabrication and Assembly. The following information was obtained for the Fabrication Department for Octobert a. All materials are added at the beginning of the process. b. Beginning work in process had 87,100 units, 30 percent complete with respect to conversion costs. c. Ending work in process had 18,400 units, 35 percent complete with respect to conversion costs. d. Started in process, 95,500 units. 1. Prepare a physical flow schedule. 2. Compute equivalent units using the weighted average method. 3. Compute equivalent units using the FIFO method. 4. Suppose that the cost of direct materials in beginning work in process is $642,200 and that the direct materials cost incurred for Oetober is $753,500. With these changes, answer the follawing: a. What is the unit materials cost for the units in BWIP? Round your answers to the nearest cent. b. What is the unit materials cost for units produced in October? Round your answers to the nearest cent. Which method should be used to answer this question? Explain why the unit materials cost is not the same for weighted average and FIFO. Of the two unit calculations; weses only October costs and October output, so it be used to calculate the unit materials cost for October. When those costs are changing from one period to the next, then the unit costs for FIFO and WA differ, As part of your explanation, show that the weighted average unit cost for materials is the blend of the September unit materials cost and the October unit materials cost. Because the weights are the of total equivalent units for each unit cost. c. Which data analyoc types (descriptive, dagnostic, predictive, or prescriptive) apply for 4 a and 4 b? Note: More than one data analytic type might apply. (See Exhibit. 2.5 and Exhibit 2.6 for a review of data analytic metrics.) Calculating what the unit materials cost is for september is Identifying the method that should be used for calculating October's unit materials cost is . Explaining why the two unit costs differ and showing how the Weighted Average method is a blend of BWip and current cost is