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: Work in process inventory, September 1 Work in process inventory, September 30 Percent Completed Units Mixing Materials Conversion 3 1 00 60 50 3 100% 20$ 10$ Work in process inventory, September 1 Cost added during September Mixing $ 5,544 $ 165,956 Materials Conversion $ 18 $ 423 $ 13,653 $ 107,266 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, 95 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 mbing, 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

Answer 1

1
	Mixing	Materials	Conversion
Units completed and transferred out	95	95	95
Work in process, ending	3	0.6	0.3
Equivalent units of production	98.0	95.6	95.3
2
	Mixing	Materials	Conversion
Work in process, May 1	5544	18	423
Cost added during May	165956	13653	107266
Total costs	171500	13671	107689
Divide by Equivalent units of production	98.0	95.6	95.3
Cost per Equivalent unit	1750	143	1130
3
	Mixing	Materials	Conversion	Total
Work in process, ending units	3	0.6	0.3
X Cost per Equivalent unit	1750	143	1130
Cost of ending work in process inventory	5250	86	339	5675
4
	Mixing	Materials	Conversion	Total
Units completed and transferred out	95	95	95
X Cost per Equivalent unit	1750	143	1130
Cost of Units completed and transferred out	166250	13585	107350	287185
5
Cost Reconciliation:
Cost to be accounted for:
Cost of Beginning work in Process inventory	5985
Cost added to production during month	286875
Total Cost to be accounted for	292860
Cost accounted for as follows:
Cost of Units completed and transferred out	287185
Cost of ending work in process inventory	5675
Total Cost accounted for	292860