Question

1. 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 A report prepared periodically by a processing department, summarizing (1) the units for which the department is accountable and the disposition of those units and (2) the costs incurred by the department and the allocation of those costs between completed and incomplete production.Cost of Production Report for the Mixing Department. He is concerned that the Mixing Department may not be operating efficiently, and asks for your help.

   Cost of Production

   Jonathan has noticed that his production manager has omitted some of the data on the Cost of Production. Determine the missing information. If there is no amount or an amount is zero, enter "0". Round your per-unit computations to the nearest cent, if required.

   Grainy Goodness Company
   Cost of Production Report-Mixing Department
   For the Month Ended March 31
   Unit Information
   Units charged to production:
   Inventory in process, March 1			2,000
   Received from materials storeroom			38,000
   Total units accounted for by the Mixing Department			40,000
   Units to be assigned costs:
   		The number of production units that could have been completed within a given accounting period, given the resources consumed.Equivalent Units
   	The number of units in production during a period, whether completed or not.Whole Units	Direct Materials	Conversion
   Inventory in process, March 1 (40% completed)	2,000
   Started and completed in March	35,000	35,000	35,000
   Transferred to Baking Department in March	37,000
   Inventory in process, March 31 (80% completed)	3,000
   Total units to be assigned costs	40,000
   Cost Information
   Cost per equivalent unit:
   		Direct Materials	Conversion
   Total costs for March in Mixing Department		$40,660	$36,670
   Total equivalent units		÷	÷
   The rate used to allocate costs between completed and partially completed production.Cost per equivalent unit		$	$
   Costs assigned to production:
   	Direct Materials	Conversion	Total
   Inventory in process, March 1	$2,200	$600	$2,800
   Costs incurred in March			77,330
   Total costs accounted for by the Mixing Department			$80,130
   Cost allocated to completed and partially completed units:
   Inventory in process, March 1-balance			$2,800
   To complete inventory in process, March 1		1,140	1,140
   Cost of completed March 1 work in process			$3,940
   Started and completed in March	37,450	33,250	70,700
   Transferred to Baking Department in March			$
   Inventory in process, March 31	3,210	2,280
   Total costs assigned by the Mixing Department			$

Answer 1

Unit charged to Production:
Inventory in process in beginning	2000
Received from storeroom		38000
Total units to account for		40000
				Whole units	Material	Conversion
Unit to be assigned cost:
Inventory in process beginning complete	2000	0	1200
Units started and completed		35000	35000	35000
Transferred to baking department	37000	35000	36200
Inventory in process at end		3000	3000	2400
Total units to be assigned cost		40000	38000	38600
					Material	Conversion
Total cost incurred in March			40660	36670
Divide: EUP units				38000	38600
Cost per EUP				1.07	0.95
Cost assigned to Production:			Material	Conversion	Total
Inventory in process in beginning		2200	600	2800
Cost incurred in March			40660	36670	77330
Total cost to account for			42860	37270	80130
Cost accounted for:
Inventory in process balance in beginning		2200	600	2800
To Complete the inventory in process at beginning	0	1140	1140
Cost of completed March01 inventory in process	2200	1740	3940
Started and complted in March			37450	33250	70700
Transferred to Baking department		39650	34990	74640
Inventory in process at end Mar31		3210	2280	5490
Total cost assigned				42860	37270	80130