Question

Physical Flow Schedule

Golding Inc. just finished its second month of operations. Golding mass-produces integrated circuits. The following production information is provided for December:

Units in process, December 1, 80% complete	110,000
Units completed and transferred out	530,000
Units in process, December 31, 60% complete	82,500

Required:

Prepare a physical flow schedule.

Answer 1

Physical flow schedule
Units in Beginning work in process	110,000	Units completed and transferred	530,000
Unites stared this period	502,500	Units in ending work in process	82,500
Total Units	612,500	Total Units	612,500

Answer 2

A physical flow schedule shows the units of production for a specific period and how they are accounted for in terms of units completed and transferred out, units in ending work in process, and units in beginning work in process. Let's prepare the physical flow schedule for Golding Inc. for the month of December:

Physical Flow Schedule for December:

1. Units in Beginning Work in Process (December 1):

• 110,000 units at 80% completion

2. Units Started and Completed during December:

• Total units completed and transferred out: 530,000 units

3. Units in Ending Work in Process (December 31):

• 82,500 units at 60% completion

Now, we can summarize the production flow for December as follows:

Units Accounted For:

1. Units in Beginning Work in Process: 110,000 units

2. Units Started and Completed during December: 530,000 units

3. Total Units Accounted for: 640,000 units (110,000 + 530,000)

Units in Ending Work in Process:

1. Units in Ending Work in Process: 82,500 units

To ensure that our calculations are correct, we can verify the total units accounted for:

110,000 (Beginning WIP) + 530,000 (Completed) + 82,500 (Ending WIP) = 640,000 units

This confirms that all units produced during December have been accounted for, considering the units completed, transferred out, and the units in ending work in process.