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 Work in process inventory, September 1 Work in process inventory, September 30 100 % 100% 60% 20% 50% 16% Mixing Materials Conversion 13,698 $ 315,862 31,622 280,93 456 $5,868 Work in process inventory, September 1 Cost added during September 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, 148 batches (ie, 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 Complete this question by entering your answers in the tabs below. K Prev 6 of 6Next>

Answer 1

UNITS TO ACCOUNT FOR:
Beginning Work in Process units				6.00
Add: Units Started in Process				148.00
Total Units to account for:				154.00
UNITS TO BE ACCOUNTED FOR:
Units completed and transferred out				148.00
Ending Work in Process				6.00
Total Units to be accounted for:				154.00
Equivalent Units:
			Mixing		Material Cost		Conversion Cost
			% Completion	Units	% Completion	Units	% Completion	Units
Units completed and transferred out			100%	148.00	100%	148.00	100%	148.00
Ending Work in Process			100%	6.00	20%	1.20	10%	0.60
Total Equivalent units				154.00		149.20		148.60
TOTAL COST TO ACCOUNT FOR:
			Mixing		Material		Conversion
Beginning work in Process			13,698		456		5,868
Cost Added during May			315,862		31,622		280,930
Total Cost to account for:			329,560		32,078		286,798
Total Cost to account for:							648,436
COST PER EQUIVALENT UNIT:
			Mixing		Material		Conversion
Cost added during the period			329,560		32,078		286,798
Equivalent Units			154.00		149.20		148.60
Cost per Equivalent unit			2140.00		215.00		1930.00
TOTAL COST ACCOUNTED FOR:
Units completed and Transferred out (148 units)
			Equivalent unit	Cost per EU	Total Cost
Mixing			148	2140	316720
Material cost			148	215	31820
Conversion Cost			148	1930	285640
Total Cost of Units completed and transferred out:					634180
Ending Work in Process (6 units)
			Equivalent unit		Total Cost
Mixing			6.00	2140	12840
Material cost			1.20	215	258
Conversion Cost			0.60	1930	1158
Total cost of Ending Work in process:					14,256
Total Cost accounted for:					648,436
Req 1.			Mixing	Material	Conversion
Eequivalent units			154	149.2	148.6
Req 2.
Cost per unit			2140	215	1930
Req 3.			Mixing	Material	Conversion	Total
Ending Work in process			12840	258	1158	14256
Req 4.			Mixing	Material	Conversion	Total
Units completed and transferred out			316720	31820	285640	634180
Req 5.
Cost Reconciliation:
Cost to be accounted for:
Beginning WIP			20022
Current cost			628414
Total cost to be accounted for			648436
Cost accounted for as under:
Units completed and transferred out			634180
Ending Work in process			14256
Total cost accounted for			648436