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:

Problem 5-13 Comprehensive Problem; Second Production Department-Weighted-Average Method [LO5-2, LO5-3, LO5-4, LO5-5] 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 100% 60% 50% 100% 20% 10% Units 4 4 Work in process inventory, September 1 Work in process inventory, September 30 Work in process inventory, September 1 Cost added during September Mixing $ 9,540 $ 266,180 Materials Conversion $ 160 $ 1,440 $ 17,304 $ 154,848 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, 118 batches (i.e., units) were completed and transferred to the Packaging Department.

Answer 1

1
	Mixing	Materials	Conversion
Units completed and transferred out	118	118	118
Work in process, ending	4	0.8	0.4
Equivalent units of production	122.0	118.8	118.4
2
	Mixing	Materials	Conversion
Work in process, September 1	9540	160	1440
Cost added during September	266180	17304	154848
Total costs	275720	17464	156288
Divide by Equivalent units of production	122	118.8	118.4
Cost per Equivalent unit	2260	147	1320
3
	Mixing	Materials	Conversion	Total
Work in process, ending units	4	0.8	0.4
X Cost per Equivalent unit	2260	147	1320
Cost of ending work in process inventory	9040	118	528	9686
4
	Mixing	Materials	Conversion	Total
Units completed and transferred out	118	118	118
X Cost per Equivalent unit	2260	147	1320
Cost of Units transferred out	266680	17346	155760	439786
5
Cost Reconciliation:
Cost to be accounted for:
Cost of Beginning work in Process inventory	11140
Cost added during September	438332
Total Cost to be accounted for	449472
Cost accounted for as follows:
Cost of Units completed and transferred out	439786
Cost of ending work in process inventory	9686
Total Cost accounted for	449472