Old Country Links, Inc, produces sausages in three production departments- Mixin

Question

Old Country Links, Inc, produces sausages in three production departments- Mixing, Casing and Curing, and Packaging. In the Moxing The spiced meat mixture is and Curing Department, where the moxture 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 Rork is Work in process inventory, Septesber 30100 process inventory, September 1 20 10 1 Hork in PEOCR ereStEY. Sepeenber Cost added during Septesber 9,54O160 1,440 266,110 17,304 154,848 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, 118 batches Le units) were completed and transferred to the Packaging Department Required: C Prey 16 of 17 Next > OSHIBA DEL 5 6 7 8 9 0 BACK RTY UIP F GHJ K L ENTER - VBNM TRI

Explanation / Answer

1) Equivalent Units of Production :-

2) Cost Per Equivalent Unit :-

3) Cost of Ending WIP Inventory :-

Total Cost of Ending WIP Inventory = $9040+$117.8+$528 = $9685.8 or $9686

4) Cost of Units Transferred out :-

Total Cost of units Transferred Out = $266680 + $17346 + $155760 = $439786

5) Cost Reconciliation report :-

Particulars Mixing Materials Conversion Units completed and Transferred to next Department(a) 118 118 118 Units in Ending WIP Inventory (b) 4 4 4 % of Completion (c) 100% 20% 10% Equivalent Units in ending WIP inventory (d)=(b*c) 4 0.8 0.4 Total Equivalent Units of Production (a+d) 122 118.8 118.4

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.