Five-step process: materials added at different points (Learning Objectives 1,2, 3) Kun Pow produces canned chicken a la king. The chicken a la king passes through three departments: (1) Mixing, (2) Retort (sterilization), and (3) Packing. In the Mixing Department, chicken and cream are added at the beginning of the process, the mixture is partly cooked, and chopped green peppers and mushrooms are added at the end of the process. Conversion costs are added evenly throughout the mixing process. November data from the Mixing Department are as follows:

Requirements 1. Draw a time line for the Mixing Department similar to Exhibit 4-6.
2. Use the time line to help you summarize the flow of physical units and compute the equivalent units. (Hint: Each direct material added at a different point in the production process requires its own equivalent-unit computation.)
3. Compute the cost per equivalent unit for each cost category.
4. 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.
5. Prepare the journal entry to record the cost of the gallons completed and trans¬ ferred out to the Retort Department.
6. Post the transactions to the Work in Process Inventory—Mixing T-account. What is the ending balance?
7. What is the primary purpose of the work in requirements 1 through 4?

Transcribed Image Text:

Completed and Gallons Beginning work in process inventory..... Started production....... 15,000 gallons transferred out to Costs Beginning work in 0 gallons process inventory $ 0 Costs added during November: Chicken..... 12,500 Retort in November... 12,900 gallons Cream........ 4,000 Ending work in Green peppers and process inventory mushrooms 11,610 (60% of the way Direct labor... 11,108 through the mixing Manufacturing process)...... 2,100 gallons overhead 3,052 Total costs....... $42,270