FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Old Country Links, Incorporated, 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:
Work in process inventory, September 1
Work in process inventory, September 30
Work in process inventory, September 1
Cost added during September
Units
1
1
Mixing
100%
100%
Mixing
$ 1,670
$ 81,460
Percent Completed
Materials
90%
80%
Materials
$90
$ 6,006
Conversion
80%
70%
Conversion
$ 605
$ 42,490
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 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.
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Transcribed Image Text:Old Country Links, Incorporated, 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: Work in process inventory, September 1 Work in process inventory, September 30 Work in process inventory, September 1 Cost added during September Units 1 1 Mixing 100% 100% Mixing $ 1,670 $ 81,460 Percent Completed Materials 90% 80% Materials $90 $ 6,006 Conversion 80% 70% Conversion $ 605 $ 42,490 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 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.
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