3M

Mastery Problem: Process Cost Systems

Grainy Goodness Company

Grainy Goodness Company manufactures granola cereal by a series of three processes, beginning materials such as oats, sweeteners, and nuts being introduced in the Mixing Department. From the Mixing Department, the materials pass through the Baking and Packaging departments, emerging as boxed granola cereal ready for shipment to retail outlets. Direct materials are added at the beginning of each process, and conversion costs are incurred evenly throughout production in each department.

During March, the President and sole stockholder, Jonathan Groat, reviewed the Cost of Production Report for the Mixing Department. He is concerned that the Mixing Department may not be operating efficiently, and asks for your help.

Cost of Production

Jonathan has noticed that his production manager has omitted some of the data on the Cost of Production. Determine the missing information. If there is no amount or an amount is zero, enter "0". Round your per-unit computations to the nearest cent, if required.

Mastery Problems Process Cost Systems Grainy Goodness Company Grainy Goodness Company manufactures granola cereal by a series of three processes, beginning materials such as oats, sweeteners, and nuts being introduced in the Maing Department. From the Mading Department, the materials pass through the Baking and Packaging departments, emerging as boxed granola cere ready for shipment to retail outlets. Direct materials are added at the beginning of each process, and conversion costs are incurred evenly throughout production in each department. During March, the President and sole stockholder, Jonathan Groat, reviewed the cost of Production Report for the Mining Department. He is concerned that the Mining Department may not be operating efficien and asks for your help. Cost of Production Jonathan has noticed that his production manager has omitted some of the data on the Cost of Production. Determine the missing information. If there is no amount or an amount is zero, enter *o*. Round y per-unit computations to the nearest cent, if required. Grainy Goodness Company Cost of Production Report-Mixing Department For the Month Ended March 31 Unit Information Units charged to production Inventory in process, March 1 2,000 Received from materials storeroom 38,000 Total units accounted for by the Mixing Department 40,000 Units to be assigned costs: Equivalent Units Whole Direct Units Materials Conversion Inventory in process, March 1 (40% completed) 2,000 Started and completed in March 35,000 35,000 35,000 Transferred to Baking Department in March 37,000 Inventory in process, March 31 (90% completed) 3,000 Total units to be assigned costs 40,000 Cost Information Cost per equivalent unit: Direct Materials Conversion Total costs for March in Mixing Department $40,660 $36,955 Total equivalent units Cost per equivalent unit Costs assigned to production: Direct Materials Conversion Total Inventory in process, March 1 $2,200 $600 $2,800 Costs incurred in March 77,615 Total costs accounted for by the Mixing Department $80,415 Cost allocated to completed and partially completed units: Inventory in process, March 1-balance $2,800 To complete inventory in process, March 1 1,140 1,140 Cost of completed March 1 work in process $3,940 Started and completed in March 37,450 33,250 70,700 Transferred to Baking Department in March Inventory in process, March 31 3,210 2,565 Total costs assigned by the Mixing Department February Cost Analysis Determine the cost per unt of direct materials and for conversion for the month of February wing the completed data on the cout of Production Round your per-unit computations to the nearest cent, if required. Cost Analysis for February - Mixing Department Amount Equivalent Units Cost per Unit Direct Materials in inventory in process, March 1 Conversion costs in Inventory in process, March 1 Total cost per unit Feedback March Cost Analysis Determine the cost per unit of direct materials and for conversion for the month of March using the completed data on the cost of production, Round your per-unit computations to the nearest cent, it required. Cost Analysis for March Mixing Department Amount Equivalent Units Cost per Unit Costs for March: Direct Materials Corts for March: Conversion Total cost per unit E Mixing Dept. Evaluation Alter reviewing your work on the February Cost Analysis and March Cont Analysis, San Groot in alting the Mixing Department's performance by awering the following question In March was the Mining Department total cost per un higher or lower than in February Higher For which component was the cost per unit for March higher than in February? Conversion costs What is most probably your recommendation to Jonathan Groat given your computations? Investigate a detailed breakdown of conversion costs to determine the source of the higher per unit coat. Journal On March 31,ng the data provided on Cow of Production male entry to move the appropriate amount of cost from the Ming Department to the Bating Department of an amount box does not requre an entry leave it blank Mar 31 Work in Process Baking Work in Process-Mixing ID 10