Operation Costing
Brian Canning Co., which sells canned corn, uses an operation costing system. Cans of corn are classified as either sweet or regular, depending on the type of corn used. Both types of corn go through the separating and cleaning operations, but only regular corn goes through the creaming operation. During January, two batches of corn were canned from start to finish. Batch X consisted of 800 pounds of sweet corn and batch Y consisted of 700 pounds of regular corn. The company had no beginning or ending work-in-process inventory. The following cost information is for the month of January:
| Batch | Cost | Batch Size |
Raw sweet corn | X | $5,200 | 800 LB |
Raw regular corn | Y | 2,450* | 700 LB |
Separating department costs |
| 1,500 |
|
Cleaning department costs |
| 900 |
|
Creaming department costs |
| 210 |
|
*Includes $300 for cream.
Required
1. Compute the unit cost for sweet corn and regular corn.
2. Record appropriate journal entries.
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