Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kobani Corporation produces high quality Greek yogurts that pass through three departments - Fermentation Department (Department I), Mixing Department (Department 5 / 8 Question 3

image text in transcribed

Kobani Corporation produces high quality Greek yogurts that pass through three departments - Fermentation Department (Department I), Mixing Department (Department 5 / 8 Question 3 (30 pts) 11), and Packaging Department (Department III). The production process in the Mixing Department requires the input of two main types of ingredients. One is the basic ingredients and the other one is the special ingredients. 100% of the basic ingredients are added at the beginning of the process. For the special ingredients, they are added gradually. 30% of these special ingredients are added at the beginning of the process, 50% are added midway through the process and the remainder of the special ingredients are added at the three-quarter way through the process. The following information was available concerning the operation of the Mixing Department for the month of October 2020. Beginning work-in process (WIP) (1 October 2020): 2,500 units were 40% completed with respect to conversion costs (CC). Costs pertaining to the beginning WIP as at 1 October 2020 were: Department | $10,000, Basic Ingredients $30,000, Special Ingredients $15,000 and CC $10,000. Units started in the month were 15,000 units. Costs added to production during the month of October 2020 were: Department / $60,000, Basic Ingredients $188,750, Special Ingredients $203,400, and CC $154,500. Ending WIP as at 31 October 2020 were 3,500 units and 70% completed with respect to CC. Required: a) Use of the weighted average (WA) process costing method, calculate i) the units completed in October 2020. ii) the equivalent units for the Special Ingredients. iii) the total costs per equivalent unit. iv) the total costs of completed products transferred to the Packaging Department

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting Volume 2

Authors: Thomas Beechy, Joan Conrod, Elizabeth Farrell, Ingrid McLeod-Dick

7th Edition

1259108023, 9781259108020

More Books

Students also viewed these Accounting questions