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You Got Yogurt, Inc

Accounting

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You Got Yogurt, Inc. manufactures yogurt that goes through three processing stages prior to completion. Information on work in the first department, flavor identification and blending, is given below for November:

 

Data on Production:

Pounds in process at November 1; materials 100% complete; conversion 70% complete: 3,525

Pounds started into production during November:75,000

Pounds completed and transferred out:?

Pounds in process, November 30; materials 85% complete; conversion 40% complete: 6,100

 

Data on Costs:

Work in process inventory, November 1: Materials cost: $1,800

Conversion cost: $3,700

Cost added during November: Materials cost: $121,000

Conversion cost: $147,700

 

The company uses the weighted-average method.

 

1. Compute the equivalent units of production.
2. Compute the costs per equivalent unit for the month.
3. Determine the cost of ending work in process inventory and of the units transferred out to the next department.
4. Make a cost reconciliation schedule for the month. Below the schedule, comment on what the cost reconciliation schedule tells us about the company's costs.