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 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:

       Percent Completed
    Units   Mixing   Materials   Conversion
Work in process inventory, September 1   4   100   %   60   %   50   %
Work in process inventory, September 30   4   100   %   20   %   10   %

    Mixing   Materials   Conversion
Work in process inventory, September 1   $   9,456   $   108   $   1,828
Cost added during September   $   229,154   $   23,766   $   143,449

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, 103 batches (i.e., 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 of 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.

Complete this question by entering your answers in the tabs below.

1. Determine the Casing and Curing Department's equivalent units of production for mixing, materials, and conversion for the month of September. (Round your intermediate calculations and final answers to 1 decimal place.)

2. Compute the Casing and Curing Department's cost per equivalent unit for mixing, materials, and conversion for the month of September. (Round your intermediate calculations to 1 decimal place and your final answers to the nearest whole dollar amount.)

3. Compute the Casing and Curing Department's cost of ending work in process inventory for mixing, materials, conversion, and in total for September. (Round your intermediate calculations to 1 decimal place and your final answers to the nearest whole dollar amount.)

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. (Round your intermediate calculations to 1 decimal place and your final answers to the nearest whole dollar amount.)

5. Prepare a cost reconciliation report for the Casing and Curing Department for September. (Round your intermediate calculations to 1 decimal place and your final answers to the nearest whole dollar amount.)

Explanation / Answer

UNITS TO ACCOUNT FOR: Beginning Work in Process units 4.00 Add: Units Started in Process 100.00 Total Units to account for: 104.00 UNITS TO BE ACCOUNTED FOR: Units started and completed 100.00 Ending Work in Process 4.00 Total Units to be accounted for: 104.00 Equivalent Units: Transferred in Cost Material Cost Conversion Cost % Completion Units % Completion Units % Completion Units Units started annd completed 100% 100.00 100% 100.00 100% 100.00 Ending Work in Process 100% 4.00 20% 0.80 10% 0.40 Total Equivalent units 104.00 100.80 100.40 TOTAL COST TO ACCOUNT FOR: Transferred-in Material Conversion Beginning work in Process 9,456 108 1,828 Cost Added during May 229,154 23,766 143,449 Total Cost to account for: 238,610 23,874 145,277 Total Cost to account for: 407,761 COST PER EQUIVALENT UNIT: Transferred-in Material Conversion Cost added during the period 238,610 23,874 145,277 Equivalent Units 104.00 100.80 100.40 Cost per Equivalent unit 2294.33 236.85 1446.98 TOTAL COST ACCOUNTED FOR: Units started and Completed and Transferred out (100 units) Equivalent unit Cost per EU Total Cost Transferred-in cost 100 2294.33 229433 Material cost 100 236.85 23685 Conversion Cost 100 1446.98 144698 Total Cost of Units completed and transferred out: 397816 Ending Work in Process (4 units) Equivalent unit Total Cost Transferred-in cost 4.00 2294.33 9177.32 Material cost 0.80 236.85 189.48 Conversion Cost 0.40 1446.98 578.792 Total cost of Ending Work in process: 9,946 Req 1. Mixing Material Cnversion Equivalent units 104 100.8 100.4 Req 2 Mixing Material Conversion Cost per unitt 2294.33 236.85 1446.98 Req 3 Mixing Material Conversion Total Ending WIP 9177.33 189.48 578.792 9946 Req 4 Mixing Material Conversion Total Cost of Transferred out 229433 23685 144698 397816 Req 5: Cost Reconciliation Cost to be accounted for: Cost of Beginning WIP 11392 Cost added 396369 Total ccost to be accounted for 407761 Cost accounted for: Cost of completed units 397816 Cost of ending Wip 9946 Total cost accounte d for 407762

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