Five-step process: Materials added at different points

Royce 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 added evenly throughout the mixing process. November data from the Mixing Department are as follows:

GALLONS

Beginning work in process inventory........0 gallons

Started production 14,200 gallons

Completed and transferred out ot Retort in November.........13,200 gallons

Ending work in process inventory (60% of the way through the mixing process).........1,000 gallons

COST

Beginning work in process inventory............ $0

Cost added during November:

Chicken......$15,780

Cream........$4,100

Green peppers and mushrooms....$7,920

Direct Labor....$11,300

Manufacturing overhead....$3,156

Total costs................$42,256

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'sending work inprocessinventory