In-Class problem for Ch 16 (9.28.2018) - SOLUTION.docx

# In-Class problem for Ch 16 (9.28.2018) - SOLUTION.docx -...

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Happy Giant Mixing Department Flow of Physical Units and Computation of Equivalent Units Month Ended November 30 Flow of Production Flow of Physical Units Equivalent Units Chicken, Cream Green Peppers, Mushrooms Conversion Costs Units to account for: Beginning work in process, November 1 0 Started in production 14,800 Total physical units to account for 14,800 Units accounted for: Completed and transferred out 13,200 13,200 13,200 13,200 Ending work in process, November 30 1,600 1,600 0 1,040 b Total physical units accounted for 14,800 Total equivalent units 14,800 13,200 14,240 Step1: Calculate the equivalent unit a. The time line shows that chicken and cream are added at the beginning of the process. Green peppers and mushrooms are not added until the end of the process. The ending inventory that is 65% of the way through the production process has passed the point where the chicken and cream are added (but not the point where the green peppers and mushrooms are added). The ending inventory is complete with respect to chicken and cream, but it has no equivalent units of green peppers and mushrooms. b. 1,600 × 65% = 1,040

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• Spring '09
• AZIZ
• Conversion of units, Computation of Equivalent Units, time line shows, Step1

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