Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen

تمرين 2

Weighted Average Method, FIFO Method, Physical Flow, Equivalent Units
Heap Company manufactures a product that passes through two processes: Fabrication and Assembly.
The following information was obtained for the Fabrication Department for September:
a. All materials are added at the beginning of the process.
b. Beginning work in process had 80,000 units, 30 percent complete with respect to conversion costs.
c. Ending work in process had 17,000 units, 25 percent complete with respect to conversion costs.
d. Started in process, 95,000 units.
Required:
1. Prepare a physical flow schedule.
2. Compute equivalent units using the weighted average method.
3. Compute equivalent units using the FIFO method.