Interpreting A Production Report$$Weighted$-$Average Method

Cooperative San Jos$$ of southern Sonora state in Mexico makes a unique syrup using cane sugar and

local herbs. The syrup is sold in small bottles and is prized as a flavoring for drinks and for use in

desserts. The bottles are sold for $$11\mathrm{.}00$ each. $($The Mexican currency is the peso and is denoted by $$.)$

The first stage in the production process is carried out in the Mixing Department, which removes

foreign matter from the raw materials and mixes them in the proper proportions in large vats. The

company uses the weighted$-$average method in its process costing system.

A hastily prepared report for the Mixing Department for April appears below:

Cooperative San Jos$$ has just been acquired by another company, and the management of the

acquiring company wants some additional information about its operations.

Required:

$(1).$ What were the equivalent units for the month?

$(2).$ What were the costs per equivalent unit for the month? The beginning inventory consisted of the

following costs: materials, $$19,450$; and conversion cost, $$3,360.$ The costs added during the

month consisted of materials, $$375,000$; and conversion cost, $$224,000.$

$(3).$ How many of the units transferred to the next department were started and completed during the

month?

$(4).$ The manager of the Mixing Department, anxious to make a good impression on the new owner,

stated, "Materials prices jumped from about $$1\mathrm{.}80$ per unit in October to $$2\mathrm{.}50$ per unit in April,

but due to good cost control I was able to hold our materials cost to less than $$2\mathrm{.}50$ per unit for the

month." Should this manager be rewarded for good cost control? Explain.