Nonuniform Inputs, Transferred-In Cost Drysdale Dairy produces a variety of dairy products. In Department 12, cream (transferred in from Department 6) and other materials (sugar and flavorings) are mixed at the beginning of the process and churned to make ice cream. The following data are for Department 12 for August: Production: Units in process, August 1, 25% complete* 40,000 Units completed and transferred out 120,000 Units in process, August 31, 60% complete* 30,000 * With respect to conversion costs. 1. Prepare a physical flow schedule for the month. Drysdale Dairy Physical Flow Schedule For the Month of August Units to account for: Units in beginning work in process Units started Total units accounted for Units accounted for: Units transferred out Units in ending work in process Total units accounted for 2. Using the weighted average method, calculate equivalent units for the following categories: transferred-in, materials, and conversion. Transferred-In equivalent units Materials equivalent units Conversion equivalent units

Total units accounted for                      150,000

Transferred-In equivalent units   150,000

Materials equivalent units  150,000

Conversion equivalent units 138,000

Explanation:

Production:                                              Units in process,

August 1, 25% complete*                                   40,000

Units completed and transferred out               120,000

Units in process, August 31, 60% complete   * 30,000 *

With respect to conversion costs.

Drysdale Dairy

Physical Flow

Schedule For the Month of August

Units to account for:

Units in beginning work in process       40,000

Units started                                           110,000

( Units completed + Ending Units in process- BWIP= 120,000+ 30,000- 40,000= 110,000)

Total units accounted for                      150,000

Units accounted for:

Units transferred out                            120,000

Units in ending work in process            30,000

Total units accounted for                      150,000

Weighted Average Method Equivalent Units

Equivalent Units

Transferred-In                                 Materials        Conversion

Transferred Out 120,000               120,000            120,000

Add EWIP        30,000                      30,000            18,000( 60% of 30,000)

Equivalent Units  150,00                150,000           138,000

Materials equivalent units  150,000

Conversion equivalent units 138,000

Weighted Average Method is used  adding the ending work in process and the transferred out units.

statement of owner"s equity;

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