Managerial Accounting

5-5 Production Report, No Beginning Inventory
Wantler Company
Mixing Department
-------------------------------------------------
Production Report for 2001

Unit Information Units to account for: Units in beginning WIP 0 Units started 75,000 Units to account for 75,000

Units accounted for: Equivalent Units Physical Direct Conversion Flow Materials Costs Units completed 75,000 75,000 75,000 Units in ending WIP 12,000 12,000 11,400 Total units accounted for 87,000 87,000 86,400

Cost Information
Costs to account for: Direct Conversion Materials Costs Total Costs in beginning WIP $ 0 $ 0 $ 0 Costs added by department 75,000 372,000 447,000 Total costs to account for $75,000 $372,000 $447,000

Cost per equivalent unit $ 1.00 $ 5.00 $ 6.00

Costs accounted for: Units completed (75,000 $6.00) $450,000 Ending work in process (12,000 $1.00) + (11,400 $5.00) 69,000 Total costs accounted for $519,000

5–6 Weighted Average Method, FIFO, Physical Flow, Equivalent Units
1. Physical flow schedule:

Units, beginning work in process 12,000 Units started 20,000 Units to account for 22,000

Units completed and transferred out: Started and completed 1,200 From beginning work in process 12,000 Units, ending work in process 8,800 Total units accounted for 22,000

2. Equivalent units—Weighted average method: Direct Materials Conversion Costs Units completed 13,200 13,200 Units, ending work in process: 8,800 100% 8,800 8,800 25% 2,200 Equivalent units of output 22,000 15,400

3. Equivalent units—FIFO method: Direct Materials Conversion Costs Units started and completed