Question

Saved Cooperative San José of southern Sonora state in Mexico makes a unique syrup using cane sugar and local herbs. The syrup is sold in small bottles and is prized as a flavoring for drinks and for use in desserts. The bottles are sold for $12 each. The first stage in the production process is carried out in the Mixing Department, which removes foreign matter from the raw materials and mixes them in the proper proportions in large vats. The company uses the weighted average method in its process costing system. A hastily prepared report for the Mixing Department for April appears below. 30.000 200.000 230,000 Units to be accounted for Work in process, April i materials 908 complete; conversion 800 complete) Started into production Total units to be accounted for Units accounted for as follows: Transferred to next department Work in process, April 30 (materials 75% complete conversion 60 complete) Total units accounted for Cost Reconciliation Cost to be accounted for: Work in process, April 1 Cost added during the month Total cost to be accounted for cost accounted for follo Work in proceso, April 30 Transferred to bext department Total cost accounted for $ 98,000 $27.000 3925.000 $ 119,400 805,500 $925,000 Management would like some additional information about Cooperative San Jose's operations. Required: 1. What were the Mixing Department's equivalent units of production for materials and conversion for April? 2. What were the Mixing Department's cost per equivalent unit for materials and conversion for April? The beginning inventory consisted of the following costs: materials, $67,800, and conversion cost $30.200. The costs added during the month consisted of: materials, $579,000, and conversion cost, $248.000 3. How many of the units transferred out of the Mixing Department in April were started and completed during that month? 4. The manager of the Mixing Department stated, "Materials prices jumped from about $2.50 per unit in March to $3 per unit in April but due to good cost control I was able to hold our materials cost to less than $3 per unit for the month. Should this manager be rewarded for good cost control? < Prev 4 of 4 !!! Next MacBook Air

Answer 1

Answer! u Calealation of the Equivalent units produced. _ Tolal cwils Materials conversion Trawfered out to next 190,000 190,000 | 190,000 production der Abending work in process 40,000 s 30,000 1 24,000 110,000x757 40,000x 60). Total Equivalent units 220,000 214.000 .. the equivalent unit of Direct Materials are 220,000 - and conversion is 214,000. 2) Calculation of the equivalent unit cost. Materials conversion cost of beginning work in process $67,800 $30,200 Add cost added deering the period $ 579,000 $248.000 Total cost (A) $646,800|$278.200 Equivalent units of production () 220,000 214,000 Cost per equivalent units FJ $2.94 $1,30 .: The cost per equivalent unit of materials are $2.94 and conversion is 31.30. 3) calculation of the cost of ending work in process. 4) "NO" the cost of material hav consideration of priod period figure can't be used for evaluating cost control pra uwits started and completed during April = Total units Transferred – Beginning work in process : $ 190,000 - $30,000. started Qud completed during April = $ 160,000. e cost of material have been averaged due to ion of priod period material costs. so this e for evaluating cost control procechos