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 Received from materials storeroom Total units accounted for by the Mixing Department Units to be assigned costs: 2,000 38,000 40,000 Whole Units 2,000 Equivalent Units Direct Materials Conversion Inventory in process, March 1 (40% completed) Whole Units Equivalent Units Direct Materials Conversion 35,000 35,000 Inventory in process, March 1 (40% completed) Started and completed in March Transferred to Baking Department in March Inventory in process, March 31 (80% completed) Total units to be assigned costs 2,000 35,000 37,000 3,000 40,000 Cost Information Cost per equivalent unit: Total costs for March in Mixing Department Total equivalent units Direct Materials Conversion $40,660 $36,670 Cost per equivalent unit Costs assigned to production: Direct Materials Conversion $2,200 $600 Inventory in process, March 1 Costs incurred in March Total costs accounted for by the Mixing Department Cost allocated to completed and partially completed units: Inventory in process, March 1-balance To complete inventory in process, March 1 Total $2,800 77,330 $80,130 $2,800 1,140 1,140 1,140 To complete inventory in process, March 1 Cost of completed March 1 work in process Started and completed in March Transferred to Baking Department in March Inventory in process, March 31 Total costs assigned by the Mixing Department 1,140 $3,90 70,700 37,450 33,250 3.210 2,280 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 Uni 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 Amount Equivalent Units Costs for March: Direct Materials Cost per Unit 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 Air 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