Question

Process Costing

You Got Yogurt, Inc. manufactures yogurt that goes through three processing stages prior to completion. Information on work in the first department, flavor identification and blending, is given below for November:

Data on Production:
	Pounds in process at November 1; materials 100% complete; conversion 70% complete	3,525
	Pounds started into production during November	75,000
	Pounds completed and transferred out	?
	Pounds in process, November 30; materials 85% complete; conversion 40% complete	6,100
Data on Costs:
	Work in process inventory, November 1: Materials cost	$1,800
	Conversion cost	$3,700
	Cost added during November: Materials cost	$121,000
	Conversion cost	$147,700

The company uses the weighted-average method.

Submit your assignment as an Excel spreadsheet document, clearly organized (please show calculations), with each tab or section labeled by item number that demonstrates the following:

1. Compute the equivalent units of production.
2. Compute the costs per equivalent unit for the month.
3. Determine the cost of ending work in process inventory and of the units transferred out to the next department.
4. Prepare a cost reconciliation schedule for the month. Below the schedule, comment on what the cost reconciliation schedule tells us about the company’s costs.

Answer 1

Answer 1:

Answer 2:

Answer 3:

Answer 4:

Cost reconciliation schedule tells us that costs that have to be accounted for are equal to cost that have been accounted for.

This tells us that there is no un-allocated costs and that all costs that are incurred and are to be accounted for, have been fully allocated/accounted for.