Jackson Products produces a barbeque sauce using three departments: Cooking, Mixing, and Bottling. In the Cooking Department, all materials are added at the beginning of the process. Output is measured in ounces. The production data for July are as follows: Production: Units in process, July 1, 60% complete* 10,100 Units completed and transferred out 80,000 Units in process, July 31, 80% complete* 15,100 * With respect to conversion costs. Required: Question Content Area 1. Prepare a physical flow schedule for July. Jackson ProductsPhysical Flow ScheduleFor the Month of July Units to account for: Total units to account for Units accounted for: Units completed and transferred out: Total units accounted for 2. Prepare an equivalent units schedule for July using the FIFO method. Enter percentages as whole numbers. If an amount box does not require an entry, enter "0". Jackson ProductsEquivalent Units Schedule Direct Materials Conversion Costs Add: Units in beginning work in process × Percentage to complete: Add: Units in ending work in process × Percentage complete: 3. What if 60 percent of the materials were added at the beginning of the process and 40 percent were added at the end of the process (all ingredients used are treated as the same type or category of materials)? How many equivalent units of materials would there be? _______________________ equivalent units
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Unit Information with BWIP, FIFO Method
Jackson Products produces a barbeque sauce using three departments: Cooking, Mixing, and Bottling. In the Cooking Department, all materials are added at the beginning of the process. Output is measured in ounces. The production data for July are as follows:
| Production: | |
| Units in process, July 1, 60% complete* | 10,100 |
| Units completed and transferred out | 80,000 |
| Units in process, July 31, 80% complete* | 15,100 |
| * With respect to conversion costs. |
Required:
Question Content Area
1. Prepare a physical flow schedule for July.
| Units to account for: | ||
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| Total units to account for | ||
| Units accounted for: | ||
| Units completed and transferred out: | ||
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| Total units accounted for |
2. Prepare an equivalent units schedule for July using the FIFO method. Enter percentages as whole numbers. If an amount box does not require an entry, enter "0".
| Direct Materials | Conversion Costs | |
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| Add: Units in beginning work in process × Percentage to complete: | ||
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| Add: Units in ending work in process × Percentage complete: | ||
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3. What if 60 percent of the materials were added at the beginning of the process and 40 percent were added at the end of the process (all ingredients used are treated as the same type or category of materials)? How many equivalent units of materials would there be?
_______________________ equivalent units
Solution 1:
| Jackson Products Physical flow Schedule For the month of July |
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| Particulars | Physical units |
| Units to be accounted for: | |
| Beginning WIP Inventory | 10100 |
| Units started this period | 85000 |
| Total unit to be accounted for | 95100 |
| Units Accounted for: | |
| Units completed and transferred out: | |
| From beginning inventory | 10100 |
| Started and completed currently | 69900 |
| Transferred to finished goods | 80000 |
| Units in ending WIP | 15100 |
| Total units accounted for | 95100 |
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