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:

Percent Completed Units Mixing Materials Conversion 100% 60% 50% 7 100% 10% Work in process inventory, September 1 Work in process inventory, September 30 20% Work in process inventory, September 1 Cost added during September Mixing $ 13,006 $ 128,404 Materials Conversion $ 112 $ 4,193 $ 11,852 $ 110,310

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, 72 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.

PLEASE help its due in 55 minutes and i have no idea how to do 4 or why 5 is wrong, thank you!!!!!

Answer 1

Required 4)
	Mixing	Materials	Conversion	Total
Cost of units transferred out	$          128,880	$                    11,736	$     113,400	$         254,016
Working Notes
Number of units completed and transferred out	72
	Mixing	Materials	Conversion
Cost per equivalent unit (a)	$               1,790	$                         163	$          1,575
Cost of units transferred out (a × 72)	$          128,880	$                    11,736	$     113,400
Required 5)
Casing and Curing Department
Cost Reconciliation
Costs to be accounted for:
Cost of beginning work in process inventory	$             17,311
Costs added to production during the period	250,566
Total costs to be accounted for	$          267,877
Costs accounted for as follows:
Cost of ending work in process inventory	$             13,861
Cost of units complted and transferred out	254,016
Total costs accounted for	$          267,877