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Cooperative San José of southern Sonora state in Mexico makes a unique syrup using cane sugar and local herbs. The syrup is s

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Answer #1

Solution 1:

Production Cost report - Mixing Department
Computation of Equivalent unit of Production
Particulars Physical Units Material Conversion
Units to account for:
Beginning WIP 30000
Started into Production 200000
Total units to account for 230000
Units accounted for:
Unit completed & Transferred out 190000 190000 190000
Units in ending inventory: 40000
Material (75%) 30000
Conversion (60%) 24000
Equivalent units of production 230000 220000 214000

Solution 2:

Computation of Cost per equivalent unit - Mixing department
Particulars Material Conversion Total
Opening WIP $67,800 $30,200 $98,000
Cost Added during Period $579,000 $248,000 $827,000
Total cost to be accounted for $646,800 $278,200 $925,000
Equivalent units of production 220000 214000
Cost per Equivalent unit $2.94 $1.30

Solution 3:

Units started and completed during the month = 190000 - 30000 = 160000 units

Solution 4:

No, manager should not be awarded for good cost of control, the average material cost is less than $3 per unit, because manager adopted weighted average method of process costing.

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