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 obtained for the Fabrication Department for October: a. All materials are added at the beginning of the process. b. Beginning work in process had 73,400 units, 35 percent complete with respect to conversion costs. C. Ending work in process had 14,800 units, 40 percent complete with respect to conversion costs. d. Started in process, 96,700 units. Required: 1. Prepare a physical flow schedule. Middelton Company Physical Flow Schedule Units to account for: Units, beginning work in process 73,400 Units started 96,700 Total units to account for 170,100 Units accounted for: Units completed and transferred out: Started and completed 81,900 From beginning work in process 73,400 Units, ending work in process 14,800 Total units accounted for 170,100 Feedback 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 170,100 Conversion Costs 161,220 3. Compute equivalent units using the FIFO method. FIFO method: Equivalent Units Direct Materials 96,700 Conversion Costs 135,530 4. Suppose that the cost of direct materials in beginning work in process is $548,900 and that the direct materials cost incurred for October is $791,900. With these changes, answer the following: 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 not the same for weighted average and FIFO. uses only October costs and October output, so it Of the two unit calculations, differ. 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 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 analytic types (descriptive, diagnostic, predictive, or prescriptive) apply for 4a and 4b? Note: More than one data analytic type might apply. (See Exhibit 2.5 and Exhibit 2.6 for a review of data analytic metrics.) . 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 Calculating what the unit materials cost is for September is Weighted Average method is a blend of BWIP and current cost is