Old Country Links, Inc., produces sausages in three production Department, meats

Question

Old Country Links, Inc., produces sausages in three production Department, meats and Curing Department, where the In the Packaging Department, the cured sausages are sorted, packed, and labeled. The company uses the in its process costing system. Data for September for the Casing and Curing Department follow departments-Mixing, Casing and Curing, and Packaging. In the Mixing mixture is force-fed into casings and then hung and cured in climate-controlled smoking chambers. are prepared and ground and then mixed with spices. The spiced meat mixture is then transferred to the Casing Percent Completed Units Mixing Materials Conversion Work in process inventory, September 1 3 Work in process inventory, September 3e 3 100% ïee% 68% 2e% 50% 10% Mixing Materials Conversion Work in process inventory, septen6,213 $ 42 1,761 Cost added during September $192,687 16,392 $148,182 Mxing cost represents the costs of the spiced meat mixture transferred in from the Mixing Department. The sp processed in the Casing and Curing mixture produces a set amount of sausages that are passed on units) were completed and transferred to the Packaging Department Required: Department in batches; each unit in the above table is a batch and one batch of spiced meat partment During September, 99 batches (ie to the Packaging De September 2 Compute the Casing and Curing Department's equvalent units of production for mixing, materials, and conversion for the month of and Curing Department's cost per equivalent unit for mixing, materials, and conversion for the month of ompe the Caing and Cuting Department f k process n for ming maáeriali, conversion, andin k in process inventory for mixing, máterials, conversion, and in total for September 4 Compute the Casing and Curing Department's cost of units transferred out to the Packaging Department for mibding, materials conversion, and in total for September 5 Prepare a cost reconciliation report for the Casing and Curing Department for September

Explanation / Answer

a. Production cost report using weighted average inventory costing Quantity Schedule Units in BWIP 3 Units started 99 Units to be accounted for 102 Units transferred out 99 Units in EWIP 3 Units accounted for 102 Equivalent units Mixing Materials Conversion Beginning WIP 3 3 3 Percentage of completion 100% 60% 50% Equivalent units 3 1.8 1.5 Units transferred out 96 99 99 Ending WIP 3 3 3 Percentage of completion 100% 20% 10% Equivalent units 3 0.6 0.3 Total equivalent units 102 101.4 100.8 Cost per equivalent unit Mixing Materials Conversion BWIP $6,213 $42 $1,761 Cost added in the period $192,687 $16,392 $148,182 Cost to be accounted for $198,900 $16,434 $149,943 Total equivalent units 102 101.4 100.8 Cost per equivalent unit $1,950 $162 $1,488 Cost of ending work in process inventory Mixing Materials Conversion Total Ending WIP 3 3 3 Percentage of completion 100% 20% 10% Equivalent units 3 0.6 0.3 Cost per equivalent unit $1,950 $162 $1,488 Cost of Ending WIP $5,850 $97 $446 $6,394 Cost of units transferred out Mixing Materials Conversion Total Beginning WIP 3 3 3 Percentage of complete 0% 60% 50% Equivalent units 0 1.8 1.5 Cost incurred on BWIP in September $0 $292 $2,231 $2,523 Units started and completed 99 99 99 Cost per equivalent unit $1,950 $162 $1,488 Cost of units started and completed $193,050 $16,045 $147,265 $356,360 Cost of units transferred out $193,050 $16,337 $149,497 $358,883 Cost Reconciliation Costs to be accounted for BWIP $8,016 Cost incurred during September $357,261 Total cost to be accounted for $365,277 Costs accounted for as follow EWIP $6,394 Cost of units transferred out $358,883 Total cost accounted for $365,277

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