Cornerstones of Managerial Accounting 4th Edition by Maryanne Mowen, Don Hansen, Dan Heitger

Exercise 9

Basic FLows, Equivalent Units
Bowman Company produces an arthritis medication that passes through two departments: Mixing and Tableting. Bowman uses the weighted average method. Data for February for Mixing is as follows: BWIP was zero; EWIP had 7,200 units, 50 percent complete; and 84,000 units were started. Tableting's data for February is as follows: BWIP was 4,800 units, 20 percent complete; and 2,400 units were in EWIP, 40 percent complete.
Required:
1. For Mixing, calculate the (a) number of units transferred to Tableting, and (b) equivalent units of production.
2. For Tableting, calculate the number of units transferred out to Finished Goods.
3. Conceptual Connection: Suppose that the units in the mixing department are measured in ounces, while the units in Tableting are measured in bottles of 100 tablets, with a total weight of eight ounces (excluding the bottle). Decide how you would treat units that are measured differently, and then repeat Requirement 2 using this approach.