Grammer Chicken 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 incurred evenly throughout the mixing process. November 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 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

Transcribed Image Text:

Gallons Beginning work in process inventory......... 0 gallons Costs Beginning work in process inventory............... $ 0 Started production. 14,300 gallons Costs added during November: Completed and transferred out to Chicken 21,740 Retort in November. 13,600 gallons Cream 4,000 Ending work in process inventory Green peppers and mushrooms. 5,440 (60% of the way through the Direct labor..... 11,200 mixing process).... Manufacturing overhead 9,830 700 gallons Total costs $52,210