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	4	100	%	60	%	50	%
Work in process inventory, September 30	4	100	%	20	%	10	%

	Mixing		Materials		Conversion
Work in process inventory, September 1	$	9,456	$	108	$	1,828
Cost added during September	$	229,154	$	23,766	$	143,449

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, 103 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

figure the Casing and Curing Department's cost per equivalent unit for mixing, materials, and conversion for the month of September. (Round your intermediate calculations to 1 decimal place and your final answers to the nearest whole dollar amount.)

	Mixing Materials Conversion Cost per equivalent unit

figure the Casing and Curing Department's cost of ending work in process inventory for mixing, materials, conversion, and in total for September. (Round your intermediate calculations to 1 decimal place and your final answers to the nearest whole dollar amount.)

	Mixing Materials Conversion Total Cost of ending work in process inventory

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. (Round your intermediate calculations to 1 decimal place and your final answers to the nearest whole dollar amount.)

	Mixing Materials Conversion Total Cost of units transferred out

figure 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:    Total cost to be accounted for Costs accounted for as follows: Total cost accounted for

Answer 1

1
	Mixing	Materials	Conversion
Units completed and transferred out	103	103	103
Work in process, ending	4	0.8	0.4
Equivalent units of production	107.00	103.8	103.4
2
	Mixing	Materials	Conversion
Work in process, September 1	9456	108	1828
Cost added during September	229154	23766	143449
Total costs	238610	23874	145277
Divide by Equivalent units of production	107	103.8	103.4
Cost per Equivalent unit	2230	230	1405
3
	Mixing	Materials	Conversion	Total
Work in process, ending units	4	0.8	0.4
X Cost per Equivalent unit	2230	230	1405
Cost of ending work in process inventory	8920	184	562	9666
4
	Mixing	Materials	Conversion	Total
Units completed and transferred out	103	103	103
X Cost per Equivalent unit	2230	230	1405
Cost of Units transferred out	229690	23690	144715	398095
5
Cost Reconciliation:
Cost to be accounted for:
Cost of Beginning work in Process inventory	11392
Cost added during September	396369
Total Cost to be accounted for	407761
Cost accounted for as follows:
Cost of Units completed and transferred out	398095
Cost of ending work in process inventory	9666
Total Cost accounted for	407761