Myer\'s Treats makes institutional cakes. Finished cakes must pass through two d
ID: 2543241 • Letter: M
Question
Myer's Treats makes institutional cakes. Finished cakes must pass through two departments: Mixing and Baking. Vats of cake batter are processed in the Mixing Department and then transferred to the Baking Department, where individual cakes are baked, cooled and frosted. There were 500 gallons of partially mixed batter in the Mixing Department's inventory on August 1. The batter was 100 percent complete with respect to direct materials, but only 30 percent complete with respect to conversion. Manufacturing costs assigned to the inventory carried forward from July totaled $1,800. During August, the Mixing Department started 11,500 new gallons of batter. August direct materials costs in the Mixing Department totaled $34,500, and conversion costs totaled $22,800. Ending inventory on August 31 consisted of 600 partially mixed gallons of batter. These units were 100 percent complete with respect to direct materials, but only 25 percent complete with respect to conversion. Myer's Treats uses one gallon of mix for each cake produced by the Baking Department. On August 1, the Baking Department had 600 cakes in process. These units were 100 percent complete with respect to batter transferred in from the Mixing Department during July but only 80 percent complete with respect to direct (frosting) materials, and 40 percent complete with respect to conversion. Costs applied to these units carried forward from July totaled $5,880. Costs incurred by the Baking Department during August included $34,185 of direct materials and $67,860 of conversion. The ending inventory in the Baking Department on August 31 consisted of 500 cakes in process. These units were 100 percent complete with respect to batter transferred in from the Mixing Department, but only 75 percent complete with respect to direct (frosting) materials, and 10 percent complete with respect to conversion. a. Compute how many cakes were started in the Baking Department during August. b. Prepare a schedule showing: (1) cakes transferred out of the Baking Department in August, and (2) cakes started and completed by the Baking Department in August c. Compute the equivalent units of input resources for the Baking Department in August d. Compute the cost per equivalent unit of input resource for the Baking Department in August e. Prepare the summary journal entry required to transfer the cost of baked cakes from the Baking Department's Work in Process nventory to the company's Finished Goods Inventory in August. f. Compute the total cost assigned to the Baking Department's ending inventory in process on August 31 Complete this question by entering your answers in the tabs below Required A Required B Required C Required D Required E Required FExplanation / Answer
Mixing department in august: Phy units Mat conver total OWIP 500 350 started & comple 10900 10900 10900 transf out 11400 CWIP 600 600 150 Eq. unit 11500 11400 Cost during aug 34500 22800 cost per Eq. unit 3 2 Cost of transf out: OWIP 1800 started & comple 32700 21800 54500 Total cost of transf out 56300 Cost of CWIP 1800 300 2100 Baking department in august: Phy units tranf in Mat. Mat conver total OWIP 600 120 360 started & comple 10900 10900 10900 10900 transf out 11500 CWIP 500 500 375 50 Eq. unit 11400 11395 11310 Cost during aug 56300 34185 67860 cost per Eq. unit 4.94 3 6 13.94 Cost of transf out: OWIP 5880 started & comple 13.94*10900 151946 Total cost of transf out 157826 Cost of CWIP 2470 1125 300 3895 a) cakes started in baking deptt. During august = 10900 b) 1. tranferred out of baking deptt in august = 11500 2. cakes started and completed in baking deptt in august = 10900 c) Equivalent units in baking deptt. In august: tranferredin 11400 Material 11395 conversion 11310 d) cost per eq. unit for the baking deptt in august : tranferredin $4.94 Material $3 conversion $6
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.