P20-31B Jolly Giant produces canned Italian green beans. The green beans move iv
ID: 2342197 • Letter: P
Question
P20-31B Jolly Giant produces canned Italian green beans. The green beans move ivalent units osts to s and ending two materials, ent points; no ntory or cost through three departments: (1) Mixing, (2) Retort (sterilization), and (3) Packing. In the Mixing Department, green beans are added at the begin- ning of the process, the mixture is partly cooked, then chopped red pep- pers are added at the end of the process. Conversion costs are added evenly throughout the mixing process. April 2008 data from the Mixing Department are as follows: 0 gallons Beginning work in process inventory0 Beginning work in process inventory Started production Completed and transferred out to 15,000 gallons Costs added during April Green beans Red peppers Conversion costs (direct labor, 16,500 11,610 Retort in Apeil 12,900 gallons $11,108, manufacturing overhead, $17,212) Ending work in process inventory (60% of the way through the mixing process) 28,320 56,430 2,100 gallons Total costs Requirements 1. Draw a time line for the Mixing Department. (pp. 1002-1003) 2. Use the time line to help you compute the equivalent units. (Hint Each direct material added at a different point in the production process requires its own equivalent-unit computation.) (p. 1003)Explanation / Answer
1.
2.
Equivalent units = 12900 gallons + (2100 x 60%) = 14,160 gallons
3.
a.
b.
4.
Inventory (RM) of retort dept. Dr $ 51,600
Inventory (FG) of mixing dept Cr $ 51,600
5. WIP Inventory - Mixing T a/c Dr $ 4,830
Inventory (RM) of mixing dept. Cr $ 4,830
6. Primary purpose is to keep a track on WIP of each process to reduce delays.
Timeline of the mixing department: Conversion costs Green beans are added Miixture is partly cooked Miixture is chopped Red peppers are addedRelated Questions
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