In: Accounting
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 |
3 |
100 |
% |
60 |
% |
50 |
% |
Work in process inventory, September 30 |
3 |
100 |
% |
20 |
% |
10 |
% |
|
|
Mixing |
Materials |
Conversion |
Work in process inventory, September 1 |
$ |
7,002 |
$ |
33 |
$ |
1,260 |
Cost added during September |
$ |
284,268 |
$ |
18,904 |
$ |
173,342 |
|
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, 130 batches (i.e., units)
were completed and transferred to the Packaging Department.
Determine the Casing and Curing Department's equivalent units of
production for mixing, materials, and conversion for the month of
September. (Round your intermediate calculations and final answers
to 1 decimal place.)
|
|
|
Mixing |
Materials |
Conversion |
Equivalent units of
production |
|
|
|
|
Compute the Casing and Curing Department's cost per equivalent
unit for mixing, materials, and conversion for the month of
September. (Round your intermediate calculations to 1 decimal place
and your final answers to the nearest whole dollar amount.)
|
|
|
Mixing |
Materials |
Conversion |
Cost per equivalent
unit |
|
|
|
|
Compute the Casing and Curing Department's cost of ending work
in process inventory for mixing, materials, conversion, and in
total for September. (Round your intermediate calculations to 1
decimal place and your final answers to the nearest whole dollar
amount.)
|
|
|
Mixing |
Materials |
Conversion |
Total |
Cost of ending work in
process inventory |
|
|
|
|
|
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. (Round your intermediate
calculations to 1 decimal place and your final answers to the
nearest whole dollar amount.)
|
|
|
Mixing |
Materials |
Conversion |
Total |
Cost of units transferred
out |
|
|
|
|
|
Prepare a cost reconciliation report for the Casing and Curing
Department for September. (Round your intermediate calculations to
1 decimal place and your final answers to the nearest whole dollar
amount.)
|
|
Casing and Curing Department |
Cost Reconciliation |
Costs to be accounted for: |
|
|
|
|
|
Total cost to be accounted for |
|
Costs accounted for as follows: |
|
|
|
|
|
Total cost accounted
for |
|
|
|