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Homework answers / question archive / Old Country Links, Inc, produces sausages in three production departments-Mixing Casing and Curing, and Packaging
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: Work in process inventory, September 1 Work in process inventory, September 30 Percent Completed Units Mixing Materials Conversion 5 1eer 605 504 5 lees 204 ies Work in process inventory, September 1 Cost added during September Mixing Materials Conversion $ 13,240 254,005 $ 291,680 $ 21,035 $ 202,200 nces 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, 116 batches (ie.. 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 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.
1.
| Physical units | Mixing | Material | Conversion | |
| Work in Process Beginning | 5 | |||
| Started during the period | 116 | |||
| To account for | 121 | |||
| Units transferred to finished goods | 116 | 116 | 116 | 116 |
| Work in Process Ending | 5 | 5 | 1 | 0.5 |
| Accounted for | 121 | |||
| Equivalent units | 121 | 117 | 116.5 |
2.
| Mixing | Material | Conversion | Total | |
| Cost of Beginning Work in Process | $ 13,240 | $ 25 | $ 4,005 | $ 17,270 |
| Cost added during the period | $ 291,680 | $ 21,035 | $ 202,200 | $ 514,915 |
| Total Cost | $ 304,920 | $ 21,060 | $ 206,205 | $ 532,185 |
| Equivalent units of Production | 121 | 117 | 116.5 | |
| Cost per equivalent unit | $ 2,520.00 | $ 180.00 | $ 1,770.00 | $ 4,470.00 |
3.
| Mixing | Material | Conversion | Total | |
| Ending work in Process Inventory | ||||
| Equivalent units of Production | 5 | 1 | 0.5 | |
| Cost per equivalent unit | $ 2,520.00 | $ 180.00 | $ 1,770.00 | |
| Cost of Ending work in Process Inventory | $ 12,600 | $ 180 | $ 885 | $ 13,665 |
4.
| Mixing | Material | Conversion | Total | |
| Units Completed and transferred out | ||||
| Units transferred to next department | 116 | 116 | 116 | |
| Cost per equivalent unit | $ 2,520.00 | $ 180.00 | $ 1,770.00 | |
| Cost of units transferred out | $ 292,320 | $ 20,880 | $ 205,320 | $ 518,520 |
5.
| Reconciliation | |
| Costs to be accounted for : | |
| Cost of beginning work in process inventory | $ 17,270 |
| Costs added to the production during the year | $ 514,915 |
| Total Costs to be accounted for | $ 532,185 |
| Cost of Ending work in Process Inventory | $ 13,665 |
| Cost of units transferred out | $ 518,520 |
| Total Costs accounted for | $ 532,185 |
