Physical Flow and Equivalent Units with EWIP

Fleming, Fleming, and Garcia, a local CPA firm, provided the following data for individual returns processed for March (output is measured in number of returns):

Units, beginning work in process
Units started	7,000
Units completed	5,300
Units, ending work in process (50% complete)	1,700
Total production costs	$7,500

Required:

1. Prepare a physical flow schedule. If an amount is zero, enter "0".

Fleming, Fleming, and Garcia Physical Flow Schedule

Units to account for:
Units in BWIPUnits in EWIPUnits in BWIP		Units in BWIP
Started and completedUnits in EWIPUnits startedUnits started		Units started
Total units to account for		fill in the blank 122016f72fe0032_5
Units accounted for:
Units completed:
From BWIPUnits in BWIPUnits startedFrom BWIP	From BWIP
Started and completedUnits in BWIPUnits startedStarted and completed	Started and completed	Started and completed
Units in BWIPUnits in EWIPUnits startedUnits in EWIP		Units in EWIP
Total units accounted for		fill in the blank 122016f72fe0032_13

Feedback

1. A physical flow schedule shows the units to account for and what happened to them.

2. Prepare an equivalent units schedule.

Fleming, Fleming, and Garcia Equivalent Units Schedule

Equivalent unitsUnits completedUnits completed	Units completed
Units in EWIP Fraction complete:	fill in the blank
Equivalent unitsUnits completedEquivalent units	Equivalent units

Feedback

2. The equivalent units schedule measures the output of the period. A fully completed unit is counted as a unit of output. Output for a unit in ending work in process is counted by its degree of completion.

3. What if EWIP is 80 percent complete? How would this change affect the physical flow schedule? The equivalent units schedule?

Changing the degree of completion

affectdoes not affectdoes not affect

the physical flow schedule. However, the equivalent units schedule

is affectedis not affectedis affected

. There would now be fill in the blank 3d9c1802bfdb003_3 equivalent units for EWIP,

increasingdecreasingincreasing

the total output for the period to fill in the blank 3d9c1802bfdb003_5.