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Unformatted text preview: COMPUTE THE PHYSICAL UNIT FLOW (STEP 1) Physical units are the actual units to be accounted for during a period, irrespective of any work performed. To keep track of these units, add the units started (or transferred) into production during the period to the units in process at the beginning of the period. This amount is referred to as the total units to be accounted for . The total units then are accounted for by the output of the period. The output consists of units transferred out during the period and any units in process at the end of the period. This amount is referred to as the total units accounted for . Illustration 16-14 shows the flow of physical units for Kellogg's Mixing Department for the month of June. Illustration 16-14 Physical unit flowMixing Department The records indicate that the Mixing Department must account for 900,000 units. Of this sum, 700,000 units were transferred to the Baking Department and 200,000 units were still in process.700,000 units were transferred to the Baking Department and 200,000 units were still in process....
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This note was uploaded on 11/08/2011 for the course ACCOUNTING ac 202 taught by Professor - during the Fall '11 term at Montgomery.
- Fall '11