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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

Solutions

Expert Solution

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
Unit transferred out 130 130 130
Ending work in process 3 0.6 0.3
Equivalent unit of production 133 130.60 130.30

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
Beginning work in process 7002 33 1260
Cost added 284268 18904 173342
Total Cost 291270 18937 174602
equivalent unit 133 130.60 130.30
Cost per equivalent unit 2190 145 1340

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 6570 87 402 7059

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 284700 18850 174200 477750

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:
Beginning work in process 8295
Cost added 476514
Total cost to be accounted for 484809
Costs accounted for as follows:
Cost of unit transferred out 477750
Cost of ending work in process 7059
Total cost accounted for 484809

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