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3. Jackson Dairy produces an organic butter that is sold by the pound. The production of the butter begins in the Churning Department. Jackson Dairy

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3. Jackson Dairy produces an organic butter that is sold by the pound. The production of the butter begins in the Churning Department. Jackson Dairy prepared the following production cost report for January for the Churning Department: 1 (Click the icon to view the January production cost report for the Churning Department) Assume the Jackson Dairy Forming Department has the following costs per equivalent unit (EU) on its own production cost report for the month of January (Click the icon to view the costs per equivalent unit (EU) information for the Forming Department.) Read the requirements Requirement 1. What is the total cost, from start to finish, of producing one pound of butter during January? The total cost, from start to finish, of producing one pound of butter during January is $ per pound Requirement 2. If the company sells all 1,365,000 pounds of the butter made in January, at a selling price of $2.80 per pound, what is the total gross profit for the month? The total gross profit for the month is $ 1: Reference Jackson Dairy Churning Department Month Ended January 31 Production Cost Report Flow of Equivalent Units Physical Direct Conversion Units Materials Costs Flow of Production Units to account for: Beginning work in process, January 1 105,000 Jackson Dairy Churning Department Month Ended January 31 Production Cost Report Flow of Equivalent Units Physical Direct Conversion Flow of Production Units Materials Costs Units to account for: Beginning work in process, January 1 105,000 Plus: Started in production during January 1,400,000 Total physical units to account for 1,505,000 Units accounted for: Completed and transferred out 1,365,000 1,365,000 1,365,000 Plus: Ending work in process, January 31 140,000 140,000 56,000 Total physical units accounted for 1,505,000 Total equivalent units 1,505,000 1,421,000 Total Costs to Account for and Cost per Equivalent Unit Beginning work in process Plus: Costs added during January Direct Conversion Materials Costs $ 120,650 $ 56,450 1,580,000 583,000 1,580,000 583,000 Plus: Costs added during January Total costs to account for Divided by: Total equivalent units 1,700,650 1,505,000 1.13 $ 639,450 1,421,000 0.45 Cost per equivalent unit $ Direct Materials Conversion Costs Total Assignment of total costs: Completed and transferred out: Equivalent units completed and transferred out 1,365,000 1.13 $ 1,365,000 0.45 Multiplied by: Cost per equivalent unit Costs assigned to units completed and transferred out $ 1,542,450 $ 614,250 $ 2,156,700 Ending work in process: Equivalent units in ending work in process, January 31 140,000 1.13 $ 56,000 0.45 Multiplied by: Cost per equivalent unit Costs assigned to units in ending work in process, January 31 $ 158,200 $ 25,200 183,400 2,340,100 Total costs accounted for $ 2: Data Table Direct Materials Conversion Costs Total Assignment of total costs: Completed and transferred out: Equivalent units completed and transferred out Multiplied by: Cost per equivalent unit Costs assigned to units completed and transferred out 1,365,000 1.13 $ 1,542,450 $ 1,365,000 0.45 614,250 $ $ 2.156,700 Ending work in process: Equivalent units in ending work in process, January 31 140,000 1.13 $ 56,000 0.45 Multiplied by: Cost per equivalent unit Costs assigned to units in ending work in process, January 31 $ 158,200 $ 25,200 183,400 Total costs accounted for $ 2,340,100 2: Data Table $ Cost per EU transferred in from Churning Department Cost per Direct Materials EU Cost per Conversion Costs EU 1.58 0.05 0.12 3: Requirements 1. What is the total cost, from start to finish, of producing one pound of butter during January? 2. If the company sells all 1,365,000 pounds of the butter made in January, at a selling price of $2.80 per pound, what is the total gross profit for the month

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