Question

Energetics Inc. produces a protein drink and uses the weighted average method. The product is sold by the litre. The company has two departments: Mixing and Bottling. For July, the bottling department had 66,100 litres in beginning inventory (with transferred-in costs of $213,000) and completed 203,000 litres during the month. Further, the mixing department completed and transferred out 254,000 litres at a cost of $642,000 in July.

Required:

1. Prepare a physical flow schedule for the bottling department.

2. Calculate equivalent units for the transferred-in category. If required, round your answer to the nearest unit.

3. Calculate the unit cost for the transferred-in category. If required, round your answer to the nearest cent.

Answer 1

Req 1.
UNITS TO ACCOUNT FOR:
Beginning Work in Process units				66,100
Add: Units Started in Process				254,000
Total Units to account for:				320,100
UNITS TO BE ACCOUNTED FOR:
Units started and completed				203,000
Ending Work in Process				117,100
Total Units to be accounted for:				320,100
Req 2
Equivalent Units:
			Transferred in
			% Completion	Units
Units started and completed			100%	203,000
Ending Work in Process			100%	117,100
Total Equivalent units				320,100
Req 3
TOTAL COST TO ACCOUNT FOR:
			Transferred in cost
Beginning work in Process			213,000
Cost Added during May			642,000
Total Cost to account for:			855,000
Total Cost to account for:
COST PER EQUIVALENT UNIT:
			Transferred in cost
Total cost added during the year			855,000
Equivalent Units			320,100
Cost per Equivalent unit			2.67