Jolly: Giant produces canned Italian green beans. The green beans more through three departments: 

(1) Mixing, 

(2) Retort (sterilization), 

(3) Packing. In the Mixing 

Department, green beans are added at the beginning of the process, the mixture is partly cooked, then chopped red peppers 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:

Requirements 

1. Draw a time line for the Mixing Department.

2. Use the time line to help you compute the equivalent units. Each direct material added at a different point in the production process requires its own equivalent-unit computation.

3. Compute the total costs of the units (gallons)

a. Completed and transferred out to the Retort Department

b. In the Mixing Department's ending work in process inventory

4. Prepare the journal entry to record the cost of the gallons completed and transferred out to the Retort Department.

5. Post the transactions to the Work in Process Inventory-Mixing T-account. What is the ending balance?

6. What is the primary purpose of the work required in steps 1 through 3?

Transcribed Image Text:

Gallons Beginning work in process inventory 0 gallons Costs Beginning work in process inventory Started production 15,000 gallons Costs added during April: Completed and transferred out to Green beans 16,500 Retort in April 12.900 gallons Red peppers 11.610 Conversion costs (direct labor, Ending work in process inventory (60% of the way through the mixing process $11.108: manufacturing overhead. $1.212) 28.320 2.100 gallons Total costs $56.430