Question

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   4   100   %   60   %   50   %
Work in process inventory, September 30   4   100   %   20   %   10   %

    Mixing   Materials   Conversion
Work in process inventory, September 1   $   9,456   $   108   $   1,828
Cost added during September   $   229,154   $   23,766   $   143,449

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, 103 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.
Complete this question by entering your answers in the tabs below.

Complete this question by entering your answers in the tabs below.

1. 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

2. 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

3. 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

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. (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

5. 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

Answer 1

UNITS TO ACCOUNT FOR:
Beginning Work in Process units				4.00
Add: Units Started in Process				100.00
Total Units to account for:				104.00
UNITS TO BE ACCOUNTED FOR:
Units started and completed				100.00
Ending Work in Process				4.00
Total Units to be accounted for:				104.00
Equivalent Units:
			Transferred in Cost		Material Cost		Conversion Cost
			% Completion	Units	% Completion	Units	% Completion	Units
Units started annd completed			100%	100.00	100%	100.00	100%	100.00
Ending Work in Process			100%	4.00	20%	0.80	10%	0.40
Total Equivalent units				104.00		100.80		100.40
TOTAL COST TO ACCOUNT FOR:
			Transferred-in		Material		Conversion
Beginning work in Process			9,456		108		1,828
Cost Added during May			229,154		23,766		143,449
Total Cost to account for:			238,610		23,874		145,277
Total Cost to account for:							407,761
COST PER EQUIVALENT UNIT:
			Transferred-in		Material		Conversion
Cost added during the period			238,610		23,874		145,277
Equivalent Units			104.00		100.80		100.40
Cost per Equivalent unit			2294.33		236.85		1446.98
TOTAL COST ACCOUNTED FOR:
Units started and Completed and Transferred out (100 units)
			Equivalent unit	Cost per EU	Total Cost
Transferred-in cost			100	2294.33	229433
Material cost			100	236.85	23685
Conversion Cost			100	1446.98	144698
Total Cost of Units completed and transferred out:					397816
Ending Work in Process (4 units)
			Equivalent unit		Total Cost
Transferred-in cost			4.00	2294.33	9177.32
Material cost			0.80	236.85	189.48
Conversion Cost			0.40	1446.98	578.792
Total cost of Ending Work in process:					9,946
Req 1.		Mixing	Material	Cnversion
Equivalent units		104	100.8	100.4
Req 2
		Mixing	Material	Conversion
Cost per unitt		2294.33	236.85	1446.98
Req 3		Mixing	Material	Conversion	Total
Ending WIP		9177.33	189.48	578.792	9946
Req 4		Mixing	Material	Conversion	Total
Cost of Transferred out		229433	23685	144698	397816
Req 5:
Cost Reconciliation
Cost to be accounted for:
Cost of Beginning WIP				11392
Cost added				396369
Total ccost to be accounted for				407761
Cost accounted for:
Cost of completed units				397816
Cost of ending Wip				9946
Total cost accounte d for				407762