C Chegg Study | Guided Solutions C Blem Https://newconnectmheduCh 4: Hand-In Pro
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C Chegg Study | Guided Solutions C Blem Https://newconnectmheduCh 4: Hand-In Problem https://newconnect.mheducation.com/flow/connect.html Apps Praine Federal Cred Investors Manageme MSU-Current Stude D campusConnection Mail brock green@ Minot State Univers M McGraw-Hill Connect E Leeon My Way arc » Ch 4: Hand-In Problem 6 Help Save & Exit Submit Check mwork Cooperative San Jose of southern Sonora state in Mexico makes a unique syrup using cane sugar and local herbs. The syrup is sold in small botules and is prized as a flavonng for drinks and for use in desserts. The botles are sold for S12 each. The fist stage in the production process Is carried out In the Mtxing Department, which removes forelgn matter from the raw materials and mixes them In the proper proportions In large vats. The compsny uses the weighted-aversge method In Its process costing system. poinss A hastlly prepared report for the Mixing Department for April appears below Skipped Units to be accounted fors Book Print References Nark in process, April 1 (Taterials 98% complete ; conversion 88% complete) Started into production 5,590 1,388 Units accounted for as follos: Transferred to next departrent Nork in process, April 30 (naterials 75% complete; 31,680 5,480 7,98e conver's Lon sa% conplete) Total units accounted for Cost Reconciliation Cost to be accounted for: 316,665 121,494 12,474 121,494 Work in process, April 1 Cost added during the month Total cost to bo accounzed for Cost accounted for as follows: Work in process, April 3e Transferred to next departrent Total cost accounted for O Type here to search 749 PM 9/26/2018 2Explanation / Answer
1 Computation of equivalent units of production: Materials Conversion Transferred to next department 31600 31600 Ending work in process: Materials (5400*75%) 4050 Conversion (5400*50%) 2700 Equivalent units of production 35650 31600 2 Computation of cost per equivalent unit: Materials Conversion Cost of beginning work in process 11770 4895 Cost added during the month 71651 33178 Total cost (a) 83421 38073 Equivalent units of production (b) 35650 31600 Cost per equivalent unit (a)/(b) 2.34 1.20 3 Computation of units started and completed : Transferred to next department 31600 Less: Beginning inventory 5500 Units started and completed 26100 It is assumed that Beginning inventory units are consumed first. 4 No.The manager should not be rewarded. Lower materal price is due to the fact that cost of prior month has been averaged with this month's cost. This is a drawback of Weighted average method. This cost cant be used for performance evaluation
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