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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. 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 38,00 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 (35% 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 $37,050 Total equivalent units Cost per equivalent unit Costs assigned to production: Direct Materials Conversion Total Inventory in process, March 1 $2,200 $525 $2,725 Costs incurred in March 77,710 Total costs accounted for by the Mixing Department $80,435 Cost allocated to completed and partially completed units: Inventory in process, March 1-balance $2,725 To complete inventory in process, March 1 1,235 1,235 Cost of completed March 1 work in process $3,96 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 unit of direct materials and for conversion for the month of February using the completed data on the Cost 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 ner unit 2 .. .Cost Information Cost per equivalent unit: Direct Materials Conversion Total costs for March in Mixing Department $40,660 $37,050 Total equivalent units Cost per equivalent unit Costs assigned to production: Direct Materials Conversion Total Inventory in process, March 1 2,200 $525 $2,725 Costs incurred in March 77,710 Total costs accounted for by the Mixing Department $80,435 Cost allocated to completed and partially completed units: Inventory in process, March 1-balance $2,725 To complete inventory in process, March 1 1,235 1,235 Cost of completed March 1 work in process $3,960 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 unit of direct materials and for conversion for the month of February using the completed data on the Cost 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 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, 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 Mixing Dept. Evaluation After reviewing your work on the February Cost Analysis and March Cost Analysis, assist Jonathan Groat in evaluating the Mixing Department's performance by answering the following questions: In March, was the Mixing Department's total cost per unit higher or lower than in February? For which component was the cost per unit for March higher than in February? What is most probably your recommendation to Jonathan Groat given your computations? Journal On March 31, using the data provided on the Cost of Production, journalize the entry to move the appropriate amount of cost from the Mixing Department to the Baking Department. If an amount box does not require an entry, leave it blank. Mar. 31 -88 ( Previous Next > Assignment Score: 0.0% Email Instructor Save and Exit Submit Assignment for Grading 2