Question

Mixing cost represents the costs of the spiced meat mixture transferred in from the Mixing Department. The spiced meat mixture is Orocessed 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. 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 mixing, 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 5 Required 3 Required 2 Required 4 Compute the Casing and Curing Department's cost of ending work in process inventory for mixing, materials, conversion, and in total for September. (Round your intermediate calculations to 1 decimal place.) Total Conversion Materials Mixing $ 2,321 Cost of ending work in process inventory Required 4 ) < Required 2

Answer 1

1)Using weighted average method of equivalent units ,Equivalent units are calculated as follows :

	Mixing	Material	Conversion
Units completed and transferred out to packaging department	50	50	50
Ending work in process inventory	1*100%= 1	1*80% =.80	1*70%= .70
Equivalent unit of production	51	50.80	50.70

.

2)

	Mixing	Material	Conversion
Work in process Inventory ,September 1	1670	90	605
cost added during September	81460	6006	42490
Total cost to account for [a]	83130	6096	43095
Equivalent unit of production [b]	51	50.80	50.70
Cost per equivalent unit of production [a/b]	83130/51= 1630	120	850

3)

	Mixing	Material	Conversion	Total
Cost of Ending work in process inventory (cost per equivalent unit * Equivalent unit of ending work in process (as calculated in part a )	1630*1=1630	120*.80=96	850*.70=595	2321

d)

	Mixing	Material	Conversion	Total
Cost of units completed and transferred out (cost per equivalent unit * Equivalent unit of ending work in process (as calculated in part a )	1630*50= 81500	120*50= 6000	850*50= 42500	130000