Energetics Inc. produces a protein drink and uses the weighted average method. T

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.

Explanation / Answer

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

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