Question

Old Country Links, Inc., produces sausages in three production departments—Mixing, Casing and Curing, and Packaging. In the Mixing Department, meats are prepared and ground and then mixed with spices. The spiced meat mixture is then transferred to the Casing and Curing Department, where the mixture is force-fed into casings and then hung and cured in climate-controlled smoking chambers. In the Packaging Department, the cured sausages are sorted, packed, and labeled. The company uses the weighted-average method in its process costing system. Data for September for the Casing and Curing Department follow:

		Percent Completed
	Units	Mixing		Materials		Conversion
Work in process inventory, September 1	2	100	%	60	%	50	%
Work in process inventory, September 30	2	100	%	20	%	10	%

	Mixing		Materials		Conversion
Work in process inventory, September 1	$	5,104	$	132	$	1,086
Cost added during September	$	382,096	$	33,449	$	236,214

Mixing cost represents the costs of the spiced meat mixture transferred in from the Mixing Department. The spiced meat mixture is processed in the Casing and Curing Department in batches; each unit in the above table is a batch and one batch of spiced meat mixture produces a set amount of sausages that are passed on to the Packaging Department. During September, 158 batches (i.e., units) were completed and transferred to the Packaging Department.

Required:

1. Determine the Casing and Curing Department's equivalent units of production for mixing, materials, and conversion for the month of September.

2. Compute the Casing and Curing Department's cost per equivalent unit for mixing, materials, and conversion for the month of September.

3. Compute the Casing and Curing Department's cost of ending work in process inventory for mixing, materials, conversion, and in total for September.

4. Compute the Casing and Curing Department's cost of units transferred out to the Packaging Department for mixing, materials, conversion, and in total for September.

5. Prepare a cost reconciliation report for the Casing and Curing Department for September.

Determine the Casing and Curing Department's equivalent units of production for mixing, materials, and conversion for the month of September. (Round your intermediate calculations and final answers to 1 decimal place.)

	Mixing Materials Conversion Equivalent units of production

	Mixing Materials Conversion Cost per equivalent unit

	Mixing Materials Conversion Cost of ending work in progress inventory

	Mixing Materials Conversion Cost of units transferred out

Prepare a cost reconciliation report for the Casing and Curing Department for September. (Round your intermediate calculations to 1 decimal place and your final answers to the nearest whole dollar amount.)

	Casing and Curing Department Cost Reconciliation Costs to be accounted for: Cost of beginning work in process inventory Costs added to production during the period Total cost to be accounted for Costs accounted for as follows: Cost of units completed and transferred out    Cost of ending work in process inventory Total cost accounted for

Answer 1

Production report for Sept for Casing and Curing Deptt.
ON WEIGHTED AVERAGE METHOD (WAM):
	Physical units	Mixing	Materials	Conversion	Total
Op WIP(on WAM)	2	2	2	2
Started & Compl.	156	156	156	156
Transferred out	158
Cl WIP	2	2	0.4	0.2
Equivalent units		160	158.4	158.2
Total cost
Op WIP		5104	132	1086	6322
During Sept		382096	33449	236214	651759
Total cost		387200	33581	237300	658081
Cost per Eq unit		2420	212	1500
Cost of Transferred out		382360	33496	237000	652856
Cost of Cl WIP		4840	85	300	5225
Total Cost accounted					658081
Cost Reconciliation:
Cost to be acct for:
Opening WIP	6322
Incurred during Sept	651759
Total Cost to acct for	658081
Costs accounted for:
Costs of Transferred out	652856
Cost of Cl. WIP	5225
total cost accounted for	658081