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3. Interpreting a Report-Weighted-Average Method Cooperative San Jos of southern Sonora state in Mexico makes a unique syrup using cane sugar and local herbs. The

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3. Interpreting a Report-Weighted-Average Method Cooperative San Jos of southern Sonora state in Mexico makes a unique syrup using cane sugar and local herbs. The syrup is sold in small bottles and is prized as a flavoring for drinks and for use in desserts. The bottles are sold for $12 each. The first stage in the production process is carried out in the Mixing Department, which removes foreign matter from the raw materials and mixes them in the proper proportions in large vats. The company uses the weighted average method in its process costing system. A hastily prepared report for the Mixing Department for April appears below: 30,000 200.000 230,00 190,000 40.00 230.000 Units to be accounted for: Work in process. April 1 (materials 90% complete conversion 80% complete) Started into production Total units to be accounted for Units accounted for as follows: Transferred to next department .... Work in process, April 30 (materials 75% complete; conversion 60% complete).... Total units accounted for Cost Reconciliation Cost to be accounted for Work in process, April 1 Cost added during the month Total cost to be accounted for Cost accounted for as follows: Work in process, April 30 Transferred to next department. Total cost accounted for.... $ 98,00 827,000 $925,00 $119.40 805.60 $925.00 Management would like some additional information about Cooperative San Jos's operations. Required: 1. What were the Mixing Department's equivalent units of production for materials and conversion for April? 2. What were the Mixing Department's cost per equivalent unit for materials and conversion for April? The beginning inventory consisted of the following costs: materials, $67,800; and conversion cast, $30,200. The costs added during the month consisted of materials, $579,000; and conversion cost, $248,000. 3. How many of the units transferred out of the Mixing Department in April were started and completed during that month? 4. The manager of the Mixing Department stated, "Materials prices jumped from about $2.50 per unit in March to $3 per unit in April, but due to good cost control I was able to hold our materials cost to less than $3 per unit for the month. Should this manager be rewarded for good cost control? Explain. 3. Interpreting a Report-Weighted-Average Method Cooperative San Jos of southern Sonora state in Mexico makes a unique syrup using cane sugar and local herbs. The syrup is sold in small bottles and is prized as a flavoring for drinks and for use in desserts. The bottles are sold for $12 each. The first stage in the production process is carried out in the Mixing Department, which removes foreign matter from the raw materials and mixes them in the proper proportions in large vats. The company uses the weighted average method in its process costing system. A hastily prepared report for the Mixing Department for April appears below: 30,000 200.000 230,00 190,000 40.00 230.000 Units to be accounted for: Work in process. April 1 (materials 90% complete conversion 80% complete) Started into production Total units to be accounted for Units accounted for as follows: Transferred to next department .... Work in process, April 30 (materials 75% complete; conversion 60% complete).... Total units accounted for Cost Reconciliation Cost to be accounted for Work in process, April 1 Cost added during the month Total cost to be accounted for Cost accounted for as follows: Work in process, April 30 Transferred to next department. Total cost accounted for.... $ 98,00 827,000 $925,00 $119.40 805.60 $925.00 Management would like some additional information about Cooperative San Jos's operations. Required: 1. What were the Mixing Department's equivalent units of production for materials and conversion for April? 2. What were the Mixing Department's cost per equivalent unit for materials and conversion for April? The beginning inventory consisted of the following costs: materials, $67,800; and conversion cast, $30,200. The costs added during the month consisted of materials, $579,000; and conversion cost, $248,000. 3. How many of the units transferred out of the Mixing Department in April were started and completed during that month? 4. The manager of the Mixing Department stated, "Materials prices jumped from about $2.50 per unit in March to $3 per unit in April, but due to good cost control I was able to hold our materials cost to less than $3 per unit for the month. Should this manager be rewarded for good cost control? Explain

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