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Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773

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BuyFindarrow_forward

Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773
Textbook Problem
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Transferred-In Cost

Vigor Inc. produces an energy drink. The product is sold by the quart. The company has two departments: mixing and bottling. For May, the bottling department had 30,000 quarts in beginning inventory (with transferred-in costs of $63,000) and completed 140,000 quarts during the month. Further, the mixing department completed and transferred out 120,000 gallons at a cost of $237,000 in May.

Required:

  1. 1. Prepare a physical flow schedule for the bottling department.
  2. 2. Calculate equivalent units for the transferred-in category.
  3. 3. Calculate the unit cost for the transferred-in category.

1.

To determine

Make a physical flow schedule for the bottling department.

Explanation

Physical Flow Schedule:

The schedule which is made with the objective to determine the production of physical units is known as physical flow schedule. It considers all units in process which can be related to any completion stage.

Prepare physical flow schedule of Company VI:

Physical Flow Schedule
Units accounted For:Units(quarts)
Units in BWIP30,000
Units started ...

2.

To determine

Compute the equivalent units for the transferred-in category.

3.

To determine

Compute the unit cost for the transferred-in category.

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