Question

Old Country Links, Inc., produces sausages in three production departments—Mixing, Casing and Curing, and Packaging. In...

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
Work in process inventory, September 1 1 100 % 60 % 50 %
Work in process inventory, September 30 1 100 % 20 % 10 %


Mixing Materials Conversion
Work in process inventory, September 1 $ 1,671 $ 15 $ 386
Cost added during September $ 215,929 $ 27,701 $ 179,297


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, 135 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.

Homework Answers

Answer #1
1
Mixing Materials Conversion
Units completed and transferred out 135 135 135
Work in process, ending 1 0.2 0.1
Equivalent units of production 136.0 135.2 135.1
2
Mixing Materials Conversion
Work in process, September 1 1671 15 386
Cost added during September 215929 27701 179297
Total costs 217600 27716 179683
Divide by Equivalent units of production 136 135.2 135.1
Cost per Equivalent unit 1600 205 1330
3
Mixing Materials Conversion Total
Work in process, ending units 1 0.2 0.1
X Cost per Equivalent unit 1600 205 1330
Cost of ending work in process inventory 1600 41 133 1774
4
Mixing Materials Conversion Total
Units completed and transferred out 135 135 135
X Cost per Equivalent unit 1600 205 1330
Cost of Units completed and transferred out 216000 27675 179550 423225
5
Cost Reconciliation:
Cost to be accounted for:
Cost of Beginning work in Process inventory 2072
Cost added during May 422927
Total Cost to be accounted for 424999
Cost accounted for as follows:
Cost of Units completed and transferred out 423225
Cost of ending work in process inventory 1774
Total Cost accounted for 424999
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Weston Products manufactures an industrial cleaning compound that goes through three processing departments—Grinding, Mixing, and Cooking....
Weston Products manufactures an industrial cleaning compound that goes through three processing departments—Grinding, Mixing, and Cooking. All raw materials are introduced at the start of work in the Grinding Department. The Work in Process T-account for the Grinding Department for May is given below: Work in Process—Grinding Department Inventory, May 1 116,640 Completed and transferred to the Mixing Department ? Materials 575,380 Conversion 221,220 Inventory, May 31 ? The May 1 work in process inventory consisted of 81,000 pounds with...
Scribners Corporation produces fine papers in three production departments—Pulping, Drying, and Finishing. In the Pulping Department,...
Scribners Corporation produces fine papers in three production departments—Pulping, Drying, and Finishing. In the Pulping Department, raw materials such as wood fiber and rag cotton are mechanically and chemically treated to separate their fibers. The result is a thick slurry of fibers. In the Drying Department, the wet fibers transferred from the Pulping Department are laid down on porous webs, pressed to remove excess liquid, and dried in ovens. In the Finishing Department, the dried paper is coated, cut, and...
Scribners Corporation produces fine papers in three production departments—Pulping, Drying, and Finishing. In the Pulping Department,...
Scribners Corporation produces fine papers in three production departments—Pulping, Drying, and Finishing. In the Pulping Department, raw materials such as wood fiber and rag cotton are mechanically and chemically treated to separate their fibers. The result is a thick slurry of fibers. In the Drying Department, the wet fibers transferred from the Pulping Department are laid down on porous webs, pressed to remove excess liquid, and dried in ovens. In the Finishing Department, the dried paper is coated, cut, and...
Scribners Corporation produces fine papers in three production departments—Pulping, Drying, and Finishing. In the Pulping Department,...
Scribners Corporation produces fine papers in three production departments—Pulping, Drying, and Finishing. In the Pulping Department, raw materials such as wood fiber and rag cotton are mechanically and chemically treated to separate their fibers. The result is a thick slurry of fibers. In the Drying Department, the wet fibers transferred from the Pulping Department are laid down on porous webs, pressed to remove excess liquid, and dried in ovens. In the Finishing Department, the dried paper is coated, cut, and...
Scribners Corporation produces fine papers in three production departments—Pulping, Drying, and Finishing. In the Pulping Department,...
Scribners Corporation produces fine papers in three production departments—Pulping, Drying, and Finishing. In the Pulping Department, raw materials such as wood fiber and rag cotton are mechanically and chemically treated to separate their fibers. The result is a thick slurry of fibers. In the Drying Department, the wet fibers transferred from the Pulping Department are laid down on porous webs, pressed to remove excess liquid, and dried in ovens. In the Finishing Department, the dried paper is coated, cut, and...
Scribners Corporation produces fine papers in three production departments—Pulping, Drying, and Finishing. In the Pulping Department,...
Scribners Corporation produces fine papers in three production departments—Pulping, Drying, and Finishing. In the Pulping Department, raw materials such as wood fiber and rag cotton are mechanically and chemically treated to separate their fibers. The result is a thick slurry of fibers. In the Drying Department, the wet fibers transferred from the Pulping Department are laid down on porous webs, pressed to remove excess liquid, and dried in ovens. In the Finishing Department, the dried paper is coated, cut, and...
1) Story Manufacturing produces a chemical pesticide and uses process costing. There are three processing departments—Mixing,...
1) Story Manufacturing produces a chemical pesticide and uses process costing. There are three processing departments—Mixing, Refining, and Packaging. On January 1, the first department—Mixing—had a zero beginning balance. During January, 42,000 gallons of chemicals were started into production. During the month, 34,000 gallons were completed, and 8,000 remained in process, partially completed. In the Mixing Department, all direct materials are added at the beginning of the production process, and conversion costs are applied evenly through the process. During January,...
Hana Inc. is a food manufacturing company that has three departments (Mixing, Baking, and Packaging departments)...
Hana Inc. is a food manufacturing company that has three departments (Mixing, Baking, and Packaging departments) used to produce their most popular product – O Cereal. Data for the Mixing Department for the month of November 2019 follow: Work-in-process, November 1 —1,000 units       70% complete for direct materials; 40% completed for conversion costs       Actual costs of direct materials, $124,000       Actual costs of conversion, $80,400 Units started during November,              3,000 Units completed during November         3,500 Work-in-process, November 30                 500 units     80% complete...
Weston Products manufactures an industrial cleaning compound that goes through three processing departments—Grinding, Mixing, and Cooking....
Weston Products manufactures an industrial cleaning compound that goes through three processing departments—Grinding, Mixing, and Cooking. All raw materials are introduced at the start of work in the Grinding Department. The Work in Process T-account for the Grinding Department for May is given below: Work in Process—Grinding Department   Inventory, May 1 174,720 Completed and transferred to the Mixing Department ?   Materials 465,510   Conversion 217,470   Inventory, May 31 ? The May 1 work in process inventory consisted of 91,000 pounds with...
Helix Corporation uses the weighted-average method in its process costing system. It produces prefabricated flooring in...
Helix Corporation uses the weighted-average method in its process costing system. It produces prefabricated flooring in a series of steps carried out in production departments. All of the material that is used in the first production department is added at the beginning of processing in that department. Data for May for the first production department follow: Percent Complete Units Materials Conversion Work in process inventory, May 1 73,000 100 % 50 % Work in process inventory, May 31 53,000 100...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT