Firenze, Inc., manufactures a product that goes through two departments prior to
ID: 2731746 • Letter: F
Question
Firenze, Inc., manufactures a product that goes through two departments prior to completion-the Mixing Department followed by the Packaging Department. The following information is available about work in the first department, the Mixing Department, during June. Assume that the company uses the weighted-average method. Determine the equivalent units of production for June for the Mixing Department. Compute the costs per equivalent unit for June for the Mixing Department. (Round your answers to 2 decimal places.) Determine the total cost of ending work in process inventory and the total cost of units transferred to the Packaging Department. (Round your intermediate calculation to 2 decimal places and final answers to the nearest whole dollar amount.) Prepare a cost reconciliation report for the Mixing Department for June. (Round your intermediate calculation to 2 decimal places and final answers to the nearest whole dollar amount.)Explanation / Answer
Requirement 1:
Determination of Equivalent units of production:
Particulars
Materials
Conversion
Goods Completed and sent
459000
459000
Opening Work in Process
-68600 (98000 * 70%)
-39200 (98000 * 40%)
Closing Working Process
81000 (108000 * 75%)
27000 (108000 * 25%)
Equivalent units
471400
446800
Requirement 2:
Computation of Cost per Equivalent unit:
Particulars
Materials
Conversion
Equivalent Units
471400
446800
Costs
429700
311020
Cost per Equivalent unit
$0.91
$0.70
Particulars
Materials
Conversion
Goods Completed and sent
459000
459000
Opening Work in Process
-68600 (98000 * 70%)
-39200 (98000 * 40%)
Closing Working Process
81000 (108000 * 75%)
27000 (108000 * 25%)
Equivalent units
471400
446800
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