Quality Confections Company manufactures chocolate bars in two processing departments, Mixing and Packaging, and uses the weighted average method for its process costing system.

The information that follows is for the two departments for the month of March.

Required

a. Prepare a production cost report for the Mixing Department for the month of March. Confirm that total costs to be accounted for (from step 2) equals total costs accounted for (from step 4); minor differences may occur due to rounding the cost per equivalent unit in step

b. Prepare a production cost report for the Packaging Department for the month. Transferred-in cost per equiva of March. Confirm that total costs to be accounted for (from step 2) equals total costs accounted for (from step 4); minor differences may occur due to rounding the cost per equivalent unit in step 3.

c. What is the highest cost component of the total equivalent cost per unit for the Packaging Department? What is the source of this cost?

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Unit Information (measured in pounds) Beginning Work in Process Inventory Started or transferred in during the month Ending Work in Process Inventory Mixing: 80% materials, 70% labor, 60% overhead Packaging: 100% materials, 80% labor, 70% overhead Cost Information Mixing Packaging 8,000 7,000 230,000 232,000 6,000 5,000 Beginning Work in Process Inventory: Direct materials Direct labor $ 3,000 $ 2,600 1,500 1,200 Overhead 2,200 2,000 Transferred-in costs 6,000 Costs Incurred During the Period: Direct materials $103,000 $110,000 Direct labor Overhead Transferred-in costs 55,000 48,000 81,000 84,000 241,280