Honeybutter, Inc., manufactures a product that goes through two departments prio
ID: 2466301 • Letter: H
Question
Honeybutter, 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.
Percent Completed
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.)
Honeybutter, 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.
Explanation / Answer
1. Calculation of equivalent units of production
Note
Beginning WIP
Material = 96000 x 30% = 28800
Conversion = 96000 x 60% = 57600
Units introduced and transferred = 450500 - 96000 = 354500
Material = 354500 x 100% = 354500
Conversion = 354500 x 100% = 354500
Closing WIP
Material = 106000 x 75% = 79500
Conversion = 106000 x 25% = 26500
2. Cost per equivalent unit
3. Cost of closing WIP = 79500 x 0.90 + 26500 x 0.69
= 89835
Cost of goods transferred = 354500 x (0.90 + 0.69) + 28800 x 0.90 + 57600 x 0.69 + 38900 + 14100
= 682319
4. Cost reconcilliation
Material Conversion Beginning WIP 28800 57600 Units introduced and transferred 354500 354500 Closing WIP 79500 26500 Equivalent units 462800 438600Related Questions
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