Question - Northern Washington Lumber Company grows, harvests, and processes timber for use as building lumber. The following data pertain to the companys sawmill:
Work in process inventory January 1 ( Materials 60% and Conversion 40%) 43,400 units
Work in process inventory December 31 (Materials 70% and Conversion 60%) 21,700 units
During the year the company started 204,000 units in production.
1. Prepare a physical flow schedule
2. Compute the number of equivalent units of both direct materials and conversion for the year, using the weighted average method.