Old Country Links Inc. produces sausages in three production departments-Mixing,

Question

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 in process inventory, September1 in process inventory, September 30 Units Mixing Materials Conversion 80% 70% 100% 100% 90% 80% MixingMaterials Conversion 1,670 90 $ 605 $ 81,460 S 6,006 S 42,490 process inventory, September1 Work in 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 production 51.0

Explanation / Answer

UNITS TO ACCOUNT FOR: Beginning Work in Process units 1.00 Add: Units Started in Process 50.00 Total Units to account for: 51.00 UNITS TO BE ACCOUNTED FOR: Units started and completed 50.00 Ending Work in Process 1.00 Total Units to be accounted for: 51.00 Equivalent Units: Transferred in Cost Material Cost Conversion Cost % Completion Units % Completion Units % Completion Units Units started annd completed 100% 50.00 100% 50.00 100% 50.00 Ending Work in Process 100% 1.00 80% 0.80 70% 0.70 Total Equivalent units 51.00 50.80 50.70 TOTAL COST TO ACCOUNT FOR: Transferred-in Material Conversion Beginning work in Process 1,670 90 605 Cost Added during May 81,460 6,006 42,490 Total Cost to account for: 83,130 6,096 43,095 Total Cost to account for: 132,321 COST PER EQUIVALENT UNIT: Transferred-in Material Conversion Cost added during the period 83,130 6,096 43,095 Equivalent Units 51.00 50.80 50.70 Cost per Equivalent unit 1630.00 120.00 850.00 TOTAL COST ACCOUNTED FOR: Units started and Completed and Transferred out (50 units) Equivalent unit Cost per EU Total Cost Transferred-in cost 50 1630 81500 Material cost 50 120 6000 Conversion Cost 50 850 42500 Total Cost of Units completed and transferred out: 130000 Ending Work in Process (1 units) Equivalent unit Total Cost Transferred-in cost 1.00 1630 1630 Material cost 0.80 120 96 Conversion Cost 0.70 850 595 Total cost of Ending Work in process: 2,321 Total Cost accounted for: 132,321 Req a: Mixing Material Conversion Equivalent units 51 50.8 50.7 Req b: Mixing Material Conversion Cost per equivalent units 1630 120 850 Req c: Cost of Ending inventory 2321 Cost of Units transferred out 130000 Req 4: Reconciliation Statement: Total cost to be accounted for: Beginning cost of Wip 2365 Current cost 129956 Total cost to be accounted for: 132321 Cost accounted for: Cost of Ending ivnentory 2321 Cost of Units transferred out 130000 Total cost accounted for 132321

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