Question

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 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.

	Required:
1.	Jonathan has noticed that his production manager has omitted some of the data on the Cost of Production panel. Determine the missing information. If there is no amount or an amount is zero, enter "0".*
2.	On the February Cost Analysis panel, determine the cost per unit of direct materials and for conversion for the month of February using the completed data on the Cost of Production panel.*
3.	On the March Cost Analysis panel, determine the cost per unit of direct materials and for conversion for the month of March using the completed data on the Cost of Production panel.*
4.	After reviewing your work on the February Cost Analysis and March Cost Analysis panels, assist Jonathan Groat in evaluating the Mixing Department’s performance by answering the questions on the Mixing Dept. Evaluation panel.
5.	On March 31, using the data provided on the panels, journalize the entry to move the appropriate amount of cost from the Mixing Department to the Baking Department. Refer to the Chart of Accounts for exact wording of account titles. *Round your per-unit computations to the nearest cent, if required.

Required.

GRAINY GOODNESS COMPANY
Cost of Production Report-Mixing Department
For the Month Ended March 31
UNITS	Whole Units	Equivalent Units
		Direct Materials	Conversion
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:
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

COSTS	Costs
	Direct Materials	Conversion	Total
Costs per equivalent unit:
Total costs for March in Mixing Department	$41,420	$38,600
Total equivalent units	÷	÷
Cost per equivalent unit
Costs assigned to production:
Inventory in process, March 1	$2,300	$640	$2,940
Costs incurred in March			80,020
Total costs accounted for by the Mixing Department			$82,960
Cost allocated to completed and partially completed units:
Inventory in process, March 1-balance			$2,940
To complete inventory in process, March 1	$0.00	$1,200	1,200
Cost of completed March 1 work in process			$4,140
Started and completed in March	$38,150	$35,000	73,150
Transferred to Baking Department in March
Inventory in process, March 31	$3,270	$2,400
Total costs assigned by the Mixing Department

Answer 1