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.

5. On March 31, using the data provided on the panels, journalize the entry to move the appropriate amount of cost from the Mixing Department to the Baking Department. Refer to the Chart of Accounts for exact wording of account titles.

Question not attempted.

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Review the Cost of Production Report you prepared to determine the amount of cost that was transferred from the Mixing Department to the Baking Department in March.

Required:

1.

Jonathan has noticed that his production manager has omitted some of the data on the Cost of Production panel. Determine the missing information. If there is no amount or an amount is zero, enter "0".*

2.

On the February Cost Analysis panel, determine the cost per unit of direct materials and for conversion for the month of February using the completed data on the Cost of Production panel.*

3.

On the March Cost Analysis panel, 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 panel.*

4.

After reviewing your work on the February Cost Analysis and March Cost Analysis panels, assist Jonathan Groat in evaluating the Mixing Departments performance by answering the questions on the Mixing Dept. Evaluation panel.

5.

On March 31, using the data provided on the panels, journalize the entry to move the appropriate amount of cost from the Mixing Department to the Baking Department. Refer to the Chart of Accounts for exact wording of account titles.

*Round your per-unit computations to the nearest cent, if required.

Here is question #1

. Jonathan has noticed that his production manager has omitted some of the data on the Cost of Production panel. 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.

GRAINY GOODNESS COMPANY
Cost of Production Report-Mixing Department
For the Month Ended March 31, 2016
UNITS	Whole Units	Equivalent Units
		Direct Materials	Conversion
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:
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 (80% completed)	3,000
Total units to be assigned costs	40,000

COSTS

Costs

Direct Materials

Conversion

Total

Costs per equivalent unit:

Total costs for March in Mixing Department

$40,660

$38,600

Total equivalent units

Cost per equivalent unit

Costs assigned to production:

Inventory in process, March 1

$2,200

$600

$2,800

Costs incurred in March

79,260

Total costs accounted for by the Mixing Department

$82,060

Cost allocated to completed and

partially completed units:

Inventory in process, March 1 balance

$2,800

To complete inventory in process, March 1

$0.00

$1,200

1,200

Cost of completed March 1 work in process

$4,000

Started and completed in March

$37,450

$35,000

72,450

Transferred to Baking Department in March

Inventory in process, March 31

$3,210

$2,400

Total costs assigned by the Mixing Department

3. 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 panel. Round your per-unit computations to the nearest cent, if required.

Cost Analysis for March- Mixing Department
	Amount	Equivalent Units	Cost per Unit
Costs for March: Direct Materials
Costs for March: Conversion
		Total cost per unit

5. On March 31, using the data provided on the panels, journalize the entry to move the appropriate amount of cost from the Mixing Department to the Baking Department. Refer to the Chart of Accounts for exact wording of account titles.

Question not attempted.

PAGE 15

JOURNAL

Score: 0/25

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2

Points:

0 / 5

Feedback

Check My Work

Review the Cost of Production Report you prepared to determine the amount of cost that was transferred from the Mixing Department to the Baking Department in March.