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	6	100	%	60	%	50	%
Work in process inventory, September 30	6	100	%	20	%	10	%

	Mixing		Materials		Conversion
Work in process inventory, September 1	$	13,404	$	30	$	2,964
Cost added during September	$	201,726	$	14,592	$	136,612

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, 95 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.

1. 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

2. Compute 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

3.Compute 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

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. (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

5. 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: Total cost to be accounted for Costs accounted for as follows: Total cost accounted for

Answer 1

Answers

• Requirement 1

	Mixing	Materials	Conversion
Equivalent units of production	101	96.2	95.6

Statement of Equivalent Units
		Mixing		Material		Conversion Cost
	Units	Complete %	Equivalent units	Complete %	Equivalent units	Complete %	Equivalent units
Transferred	95	100%	95.0	100%	95.0	100%	95.0
Closing WIP	6	100%	6.0	20%	1.2	10%	0.6
Total	101	Total	101.0	Total	96.2	Total	95.6

• Requirement 2

	Mixing	Materials	Conversion
Cost per equivalent unit	$ 2130	$ 152	$ 1460

Cost per Equivalent Units
COST	Mixing	Material	Conversion Cost	TOTAL
Beginning WIP Inventory Cost	$             13,404.00	$                   30.00	$                2,964.00	$            16,398.00
Cost incurred during period	$          201,726.00	$          14,592.00	$            136,612.00	$          352,930.00
Total Cost to be accounted for	$          215,130.00	$          14,622.00	$            139,576.00	$          369,328.00
Total Equivalent Units	101	96	96
Cost per Equivalent Units	$          2,130.0000	$            151.9958	$            1,460.0000	$          3,741.9958

• Working for Requirement 3 and 4

Statement of cost
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Mixing	$               2,130.00	6	$              12,780.00	95	$          202,350.00
Material	$                   152.00	1	$                    182.40	95	$            14,440.00
Conversion Cost	$               1,460.00	1	$                    876.00	95	$          138,700.00
TOTAL	$          369,328.40	TOTAL	$              13,838.40	TOTAL	$         355,490.00

• Requirement 3

	Mixing	Materials	Conversion	Total
Cost of ending work in process inventory	$ 12780	$ 182	$ 876	$ 13838

• Requirement 4

	Mixing	Materials	Conversion	Total
Cost of units transferred out	$ 202350	$ 14440	$ 138700	$ 355490

• Requirement 5

Costs to be accounted for:
Cost of Beginning WIP Inventory	$           16,398.00
Cost added to production during the period	$         352,930.00
Total Cost to be accounted for	$         369,328.00
Costs accounted for as follows:
Cost of units transferred out	$         355,490.00
Cost of Ending WIP Inventory	$           13,838.00
Total Cost accounted for	$         369,328.00