Question

Saved Old Country Links, Inc., produces sausages in three production departments --Mixing, Casing and Curing, and Packagin Department, meats are prepared and ground and then mixed with spices. The spiced meat mixture is then transferred t and Curing Department, where the mixture is force-fed into casings and then hung and cured in climate-controlled smo In the Packaging Department, the cured sausages are sorted, packed, and labeled. The company uses the weighted-as in its process cosung system. Data for September for the Casing and Curing Department follow: Work in process inventory, September 1 Work in process inventory, September 30 Percent Completed Mixing Materials Conversion 100 60 50 100 20 Work in process inventory, September 1 Cost added during September Mixing $ 18,792 $ 143,568 Materials Conversion $ 243 $ 3, 159 $ 40,977 $ 96, 606 Mixing cost represents the costs of the spiced meat mixture transferred in from the Mixing Department. The spiced me processed in the Casing and Curing Department in batches; each unit in the above table is a batch and one batch of sp mixture produces a set amount of sausages that are passed on to the Packaging Department. During September, 73 ba 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 September 2. Compute the Casing and Curing Department's cost per equivalent unit for mixing, materials, and conversion for the September. 3. Compute the Casing and Curing Department's cost of ending work in process inventory for mixing, materials, conver total for September 4. Compute the Casing and Curing Department's cost of units transferred out to the Packaging Department for mixing, conversion, and in total for September 5. Prepare a cost reconciliation report for the Casing and Curing Department for September < Prev 16 of 17 Next >

Answer 1

Solution

	Mixing	Material	Conversion
Equivalent Units of Production	82.0	74.8	73.9

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	Mixing	Material	Conversion
Cost per equivalent Unit	$          1,980.000	$       150.000	$          1,350.000

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	Mixing	Material	Conversion cost	Total
Ending Inventory	$ 17,820	$ 270	$ 1,215	$ 19,305

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	Mixing	Material	Conversion cost	Total
Units Completed and transferred	$ 144,540	$ 10,950	$ 98,550	$ 254,040

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Cost Reconciliation
Costs to be accounted for:
Beginning Wip cost	$ 22,194
Cost transferred in	$ 143,568
Cost incurred during period	$ 107,583
Total cost to be accounted for	$ 273,345
Costs accounted for as follows:
Cost of Units Transferred Out	$ 254,040
Cost of Ending Wip	$ 19,305
Total cost accounted for	$ 273,345

Working

Statement of Equivalent Units(Weighted average)
		Mixing		Material		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred	73	100%	73	100%	73.0	100%	73
Closing WIP	9	100%	9	20%	1.8	10%	0.90
Total	82		82	Total	74.8	Total	74

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Cost per Equivalent Units (Weighted average)
COST	Mixing	Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost	$          18,792.00	$ 243	$ 3,159	$ 22,194
Cost incurred during period	$       143,568.00	$ 10,977	$ 96,606	$ 251,151
Total Cost to be accounted for	$ 162,360	$ 11,220	$ 99,765	$ 273,345
Total Equivalent Units	82.0	74.8	73.9
Cost per Equivalent Units	$          1,980.000	$       150.000	$          1,350.000

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Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Mixing	$            1,980.00	9	$          17,820.00	73	$ 144,540
Material	$ 150.00	2	$                270.00	73	$ 10,950
Conversion cost	$ 1,350.00	1	$             1,215.00	73	$ 98,550
TOTAL	$ 273,345	TOTAL	$ 19,305	TOTAL	$ 254,040