value: 1.00 points Old Country Links Inc. produces sausages in three production
ID: 2533096 • Letter: V
Question
value: 1.00 points 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 100% 90% 80% September 1 Work in process inventory 100% 80% 70% September 30 Mixing Materials Conversion $ 1,670 $ 90 $ 605 81.460 s 6,006 s 42,490 Work in process inventory September 1 Cost added during September $ 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, 50 batches (i.e., units) were completed and transferred to the Packaging Department. Required 1. Determine the equivalent units for September for mixing, materials, and conversion. (Round your answers to 1 decimal place.) Mixing Materials Conversion Equivalent units of 51.0 50.8 50.7 roduction 2. Compute the costs per equivalent unit for September for mixing, materials, and conversion Mixing Materials Conversion $ 1,630$ 120$ Cost per 850 uivalent unitExplanation / Answer
Answers
Reconciliation of Units
Opening WIP
1
Introduced
50
TOTAL
51
Transferred
50
Closing WIP
1
Statement of Equivalent Units
Mixing
Material
Conversion Cost
Units
Complete %
Equivalent units
Complete %
Equivalent units
Complete %
Equivalent units
Transferred
50
100%
50
100%
50
100%
50
Closing WIP
1
100%
1
80%
0.8
70%
0.7
Total
51 Units
Total
51
Total
50.8
Total
50.7
Cost per Equivalent Units
COST
Mixing
Material cost
Conversion cost
TOTAL
Opening + Current cost
$ 83,130.00
$ 6,096.00
$ 43,095.00
$ 1,32,321.00
Total Equivalent Units
51
50.8
50.7
Cost per Equivalent Units
$ 1,630.00
$ 120.00
$ 850.00
$ 2,600.00
Statement of cost
Cost
Cost/unit
Closing WIP
Transferred
Units
Cost Allocated
Units
Cost Allocated
TOTAL
Mixing
$ 1,630.00
1
$ 1,630.00
50
$ 81,500.00
$ 83,130.00
Material
$ 120.00
0.8
$ 96.00
50
$ 6,000.00
$ 6,096.00
Conversion cost
$ 850.00
0.7
$ 595.00
50
$ 42,500.00
$ 43,095.00
Total
$ 2,600.00
TOTAL
$ 2,321.00 [Answer 3]
TOTAL
$ 1,30,000.00 [Answer 3]
$ 1,32,321.00
Cost of Ending WIP inventory = $ 2,321
Cost of Units Transferred Out = $ 130,000
Cost of Beginning WIP Inventory = 1670 + 90 + 605 = $ 2,365
Cost added during period = 81460 + 6006 + 42490 = $ 129,956
Total cost to be accounted for = 2365 + 129956 = $ 132,321
Cost accounted as Follows:
Cost of ending WIP = $2321 [Req 3]
Cost of units transferred out = $130000 [Req 3]
Total cost accounted for = 2321 + 130000 = $ 132,321
Reconciliation of Units
Opening WIP
1
Introduced
50
TOTAL
51
Transferred
50
Closing WIP
1
Statement of Equivalent Units
Mixing
Material
Conversion Cost
Units
Complete %
Equivalent units
Complete %
Equivalent units
Complete %
Equivalent units
Transferred
50
100%
50
100%
50
100%
50
Closing WIP
1
100%
1
80%
0.8
70%
0.7
Total
51 Units
Total
51
Total
50.8
Total
50.7
Cost per Equivalent Units
COST
Mixing
Material cost
Conversion cost
TOTAL
Opening + Current cost
$ 83,130.00
$ 6,096.00
$ 43,095.00
$ 1,32,321.00
Total Equivalent Units
51
50.8
50.7
Cost per Equivalent Units
$ 1,630.00
$ 120.00
$ 850.00
$ 2,600.00
Statement of cost
Cost
Cost/unit
Closing WIP
Transferred
Units
Cost Allocated
Units
Cost Allocated
TOTAL
Mixing
$ 1,630.00
1
$ 1,630.00
50
$ 81,500.00
$ 83,130.00
Material
$ 120.00
0.8
$ 96.00
50
$ 6,000.00
$ 6,096.00
Conversion cost
$ 850.00
0.7
$ 595.00
50
$ 42,500.00
$ 43,095.00
Total
$ 2,600.00
TOTAL
$ 2,321.00 [Answer 3]
TOTAL
$ 1,30,000.00 [Answer 3]
$ 1,32,321.00
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