Physical Flow and Equivalent Units with EWIP

Fleming, Fleming, and Johnson, 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	6,400
Units completed	4,500
Units, ending work in process (50% complete)	1,900
Total production costs	$8,000

Required:

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

Fleming, Fleming, and Johnson
Physical Flow Schedule
Units to account for:
Units in BWIP		fill in the blank a903b1047045fc3_2
Units started		fill in the blank a903b1047045fc3_4
Total units to account for		fill in the blank a903b1047045fc3_5
Units accounted for:
Units completed:
From BWIP	fill in the blank a903b1047045fc3_7
Started and completed	fill in the blank a903b1047045fc3_9	fill in the blank a903b1047045fc3_10
Units in EWIP		fill in the blank a903b1047045fc3_12
Total units accounted for		fill in the blank a903b1047045fc3_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 Johnson
Equivalent Units Schedule
Units completed	fill in the blank d91bd4f8605df86_2
Units in EWIP Fraction complete:	fill in the blank d91bd4f8605df86_3
Equivalent units	fill in the blank d91bd4f8605df86_5

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 90 percent complete? How would this change affect the physical flow schedule? The equivalent units schedule?

Changing the degree of completion does not affect the physical flow schedule. However, the equivalent units schedule is affected . There would now be fill in the blank 3c8b80fe7febfd1_3 equivalent units for EWIP, increasing the total output for the period to fill in the blank 3c8b80fe7febfd1_5.