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:

1. All materials are added at the beginning of the process.
2. Beginning work in process had 125,000 units, 40 percent complete with respect to conversion costs.
3. Ending work in process had 25,000 units, 20 percent complete with respect to conversion costs.
4. Started in process, 175,000 units.

Required:

1. Prepare a physical flow schedule.

Middelton Company Physical Flow Schedule

Units to account for:
Started and completedUnits, beginning work in processUnits, ending work in process	- Select -
Units completedUnits, ending work in processUnits startedUnits transferred out	- Select -
Total units to account for	fill in the blank 9834a6ff4fa5fef_5
Units accounted for:
Units completed and transferred out:
Started and completedUnits completedUnits startedUnits transferred out	- Select -
From beginning work in processUnits completedUnits startedUnits transferred out	- Select -
Units completedUnits, ending work in processUnits startedUnits transferred out	- Select -
Total units accounted for	fill in the blank 9834a6ff4fa5fef_12

2. Compute equivalent units using the weighted average method.

Weighted average method:	Equivalent Units
Direct Materials	fill in the blank ece5a805d078021_1
Conversion Costs	fill in the blank ece5a805d078021_2

3. Compute equivalent units using the FIFO method.

FIFO method:	Equivalent Units
Direct Materials	fill in the blank ece5a805d078021_3
Conversion Costs	fill in the blank ece5a805d078021_4

4. Suppose that the cost of direct materials in beginning work in process is $560,000 and that the direct materials cost incurred for October is $700,000. 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. $fill in the blank 8dae97fa0024fd4_1

b. What is the unit materials cost for units produced in October? Round your answers to the nearest cent. $fill in the blank 8dae97fa0024fd4_2

Which method should be used to answer this question?

Weighted AverageFIFO