Question

Schroeder Baking Corporation uses a process costing system in its large-scale baking operations. The Mixing Department is one of the company’s processing departments. In the Mixing Department in July, the cost of beginning work in process inventory was $4,280, the cost of ending work in process inventory was $3,870, and the cost added to production was $46,360.

Required:

Prepare a cost reconciliation report for the Mixing Department for July.

	Mixing Department Cost Reconciliation Costs to be accounted for: Total cost to be accounted for $0 Costs accounted for as follows: Total cost accounted for $0

Superior Micro Products uses the FIFO method in its process costing system. Data for the Assembly Department for May appear below:

	Materials		Labor		Overhead
Cost added during May	$	64,625	$	34,435	$	90,695
Equivalent units of production		12,500		9,700		9,700

Required:

Compute the cost per equivalent unit for materials, labor, overhead, and in total. (Round your answers to 2 decimal places.)

	Materials Labor Overhead Total Cost per equivalent unit

Answer 1

Answer 1	Mixing Department
	Cost Reconciliation
	Costs to be accounted for:
	Beginning work in process	$          4,280
	Cost added	$        46,360
	Total cost to be accounted for	$        50,640
	Costs accounted for as follows:
	Cost of product transferred	$        46,770
	Ending Work in process	$          3,870
	Total cost accounted for	$        50,640

Answer 2		Materials	Labor	Overhead	Total
	Cost per equivalent Units	$       5.17	$       3.55	$       9.35	$    18.07
Calculation of cost per equivalent unit
		Materials	Labor	Overhead	Total
a	Cost added during May	64,625	34,435	90,695
b	Equivalent units of production	12,500	9,700	9,700
c= a/b	Cost per equivalent Units	$       5.17	$       3.55	$       9.35	$    18.07