Question

Grainy Goodness Company Grainy Goodness Company manufactures granola cereal by a series of three processes, beginning materials such as oats sweeteners, and nuts being introduced in the Mixing Department. From the Mixing Department, the materials pass through the Baking and Packaging departments, emerging as boxed granola cereal ready for shipment to retail outlets. Direct materials are added at the beginning of each process, and conversion costs are incurred evenly throughout production in each department. During March, the President and sole stockholder, Jonathan Groat, reviewed the Cost of Production Report for the Mixing Department. He is concened that the Mixing Department may not be operating efficiently, and asks for your help. Required: 1. Jonathan has noticed that his production manager has omitted some of the data on the Cost of Production panel Determine the missing information. If there is no amount or an amount is zero, enter o 2. On the February Cost Analysis panel, determine the cost per unit of direct materials and for conversion for the month of February using the completed data on the Cost of Production panel 3. On the March Cost Analysis panel, determine the cost per unit of direct materials and for conversion for the month of March using the completed data on the Cost of Production panel. 4. After reviewing your work on the February Cost Analysis and March Cost Analysis panels, assist Jonathan Groat in evaluating the Mixing Departments performance by answering the questions on the Mixing Dept Evaluation panel 5. On March 31, using the data provided on the panels, journalize the entry to move the appropriate amount of cost from the Mixing Department to the Baking Department. Refer to the Chart of Accounts for exact wording of account tities Round your per-unit computations to the nearest cent, if required.
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Answer #1

GRAINY GOODNESS COMPANY Cost of Production Report mixing Department For the month ended March 31 uivalent Unit Direct nits Materials Units Charged to Production: Inventory in process March 1 Received from materials storeroom Total Units Accountedfor by the Mixing Dep Units to be assigned costs: Inventory in process March 1 (40% complete Started and completed in March Transferred to Baking Department in March Inventory in process March 31 (90% Comple Total Units to be assigned Costs 2000 35000 37000 3000 1200 For Conversion cost 2000X6096 35000 36200 35000 37000 2700 For Conversion cost 3000x9096 Direct Costs Total Cost per Equivalent Unit: Total Cost for march in Mixing Department Total Equivalent Unit Cost per Equivalent unit 41420 1.04 1.00 Cost per equivalent unit- total cost/equivalent unit Costs Assigned to Production: Inventory in process March 1 Cost Incurred in March Total Cost Accounted for by the Mixing Dept. 600 80320 83220 Costs Allocated to Complete and partially Completed Units: Inventory in Process March 1, Balance To Complete Inventory in Process March 1 Cost of Completed March 1 Wirk in Process Started and Completed in March Transferred to Baking Department Inventory in Process March 31 Total Cost assigned by the Mixing Department 1200 1200 4100 73150 77250 5970 83220 Conversion Cost = 1200 X 1 38150 3270 2700

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