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: points (8 04:25:14 Units 1 Percent Completed Materials Conversion 60% 50% 20% 10% Mixing 100 % 100% Work in process inventory, September 1 Work in process inventory, September 30 eBook Print Work in process inventory, September 1 Cost added during September Mixing $ 1,671 $ 215,929 Materials $ 15 $ 27,701 Conversion $ 386 $ 179,297 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, 135 batches (.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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 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 Required 1 Required 2 >

Answer 1

1) Equivalent unit

	EUP-Mixing	EUP-Material	EUP-Conversion
Unit transferred out	135	135	135
Ending WIP	1	0.20	0.10
Equivalent unit	136	135.20	135.10

2) Cost per equivalent unit

	Mixing	Material	Conversion
Beginning WIP	1671	15	386
Cost added	215929	27701	179297
Total Cost	217600	27716	179683
Equivalent unit	136	135.20	135.10
Cost per equivalent unit	1600	205	1330

3) Cost of ending WIP

	Mixing	Material	Conversion	Total
Cost of ending WIP	1600	41	133	1774

4) Cost of unit transferred out

	Mixing	Material	Conversion	Total
Cost of unit transferred out	216000	27675	179550	423225

5) Cost reconciliation

Cost to be accounted for
Beginning WIP	2072
Cost added	422927
Total cost to be accounted for	424999
Cost accounted as
Cost of unit transferred out	423225
Cost of ending WIP	1774
Total cost accounted as	424999