Fred's Bakery produces a product that passes through two departments: Mixing and Cooking. Both departments use the FIFO method. In the mixing department, all direct materials are added at the beginning of the process. Direct labor and overhead are added uniformly. The following information pertains to the mixing department for the month of July:
BWIP on July 1: 200,000 pounds, 100% complete with respect to direct materials and 40% complete with respect to conversion costs. The costs assigned to the BWIP are as follows:
- Direct Materials $40,000
- Direct Labor 20,000
- Overhead 60,000
EWIP on July 31: 100,000 pounds, 100% complete with respect to direct materials and 60% complete with respect to conversion costs.
Units completed and transferred out: 740,000 pounds. The following costs were added during the month:
- Direct Materials $422,000
- Direct Labor 200,000
- Overhead 540,000
Required: Prepare the following items for the mixing department
1. Prepare a physical flow schedule.
2. Prepare a schedule of equivalent units.