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 Mixing Materials Conversion 60 Work in process inventory, September 1 Work in process inventory, September 30 203 Work in process inventory, September 1 Cost added during September 5 Mixing Materials Conversion 5 ,184 132 1,885 5 382,096 5 33,469 5 236,214 Moxing cost represents the costs of the spiced meat mixture transferred in from the Moong 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, 158 batches (Le 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 mocing, 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.

Answer 1

1) Equivalent unit

	Mixing	Material	Conversion
Unit transferred out	158	158	158
Ending WIP	2	2*20% = 0.40	2*10% = 0.20
Equivalent unit	160	158.40	158.20

2) Cost per equivalent unit

	Mixing	Material	Conversion
Beginning WIP	5104	132	1086
Cost added	382096	33449	236214
Total Cost	387200	33581	237300
Equivalent unit	160	158.40	158.20
Cost per equivalent unit	2420	212	1500

Cost of ending WIP

	Mixing	Material	Conversion	Total
Cost of ending WIP	2*2420 = 4840	85	300	5225

Cost of unit transferred out

	Mixing	Material	Conversion	Total
Cost of unit transferred out	382360	33496	237000	652856

Cost reconciliation

Cost to be accounted for
Beginning WIP	6322
Cost added	651759
Total cost to be accounted for	658081
Cost accounted as
Cost of unit transferred out	652856
Cost of ending WIP	5225
Total Cost accounted as	658081