Question

Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Compute the Casing and Curing Department's cost per equivalent unit for mixing, materials, and conversion for the month of September. (Round your intermediate calculations to 1 decimal place.) Mixing Materials $ 1,630,000 Ⓡ$ 120,000 Conversion $ 850,000 unit < Required 1 Required 3 >

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
	Units	Mixing		Materials		Conversion
Work in process inventory, September 1	1	100	%	90	%	80	%
Work in process inventory, September 30	1	100	%	80	%	70	%

	Mixing		Materials		Conversion
Work in process inventory, September 1	$	1,670	$	90	$	605
Cost added during September	$	81,460	$	6,006	$	42,490

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, 50 batches (i.e., units) were completed and transferred to the Packaging Department.

Required:

1. Compute the Casing and Curing Department's cost per equivalent unit for mixing, materials, and conversion for the month of September.

Answer 1

Solution

	Mixing	Material	Conversion
Cost per equivalent Unit	$          1,630	$       120	$              850

If answer is required in 3 decimal place then put a dot(.) instead of comma (,) after the above answer. 1630 should be written as 1630.000

Working

Statement of Equivalent Units(Weighted average)
		Mixing		Material		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred	50	100%	50	100%	50.0	100%	50
Closing WIP	1	100%	1	80%	0.8	70%	0.70
Total	51		51	Total	50.8	Total	51

.

Cost per Equivalent Units (Weighted average)
COST	Mixing	Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost	$            1,670.00	$ 90	$ 605	$ 2,365
Cost incurred during period	$          81,460.00	$ 6,006	$ 42,490	$ 129,956
Total Cost to be accounted for	$ 83,130	$ 6,096	$ 43,095	$ 132,321
Total Equivalent Units	51.0	50.8	50.7
Cost per Equivalent Units	$          1,630.000	$       120.000	$              850.000