Question
Old Country Links Inc. produces sausages in three production departmentsMixing, Casing and Curing, and Packaging. In the Mixing Department, meats are prepared and ground and
Old Country Links Inc. produces sausages in three production departmentsMixing, Casing and Curing, and Packaging. In the Mixing Department, meats are prepared and ground and then mixed with spices. The spiced meat mixture is then transferred to the Casing and Curing Department, where the mixture is force-fed into casings and then hung and cured in climate-controlled smoking chambers. In the Packaging Department, the cured sausages are sorted, packed, and labeled. The company uses the weighted-average method in its process costing system. Data for September for the Casing and Curing Department follow: Percent Completed Units Mixing Materials Conversion Work in process inventory, September 1 6 100% 60% 50% Work in process inventory, September 30 6 100% 20% 10% ________________________________________ Mixing Materials Conversion Work in process inventory, September 1 $ 13,962 $ 24 $ 5,046 Cost added during September $ 316,788 $ 29,269 $ 249,834 ________________________________________ Mixing cost represents the costs of the spiced meat mixture transferred in from the Mixing Department . The spiced meat mixture is processed in the Casing and Curing Department in batches; each unit in the above table is a batch and one batch of spiced meat mixture produces a set amount of sausages that are passed on to the Packaging Department. During September, 141 batches (i.e., units) were completed and transferred to the Packaging Department. Required: 1. Determine the equivalent units for September for mixing, materials, and conversion. (Round your answers to 1 decimal place.) a. Equivalent units of production: Mixing:_________ Materials:________ Conversion: ________ 2. Compute the costs per equivalent unit for September for mixing, materials, and conversion. (Round your intermediate calculations to 1 decimal place. Round your final answers to the nearest whole dollar.) b. Cost per equivalent unit: Mixing:__________ Materials:________ Conversion: ___________ 3. Determine the total cost of ending work in process inventory and the total cost of units transferred to the Packaging Department in September. (Round your intermediate calculations to 1 decimal place. Round your answers to the nearest whole dollar.) c. Cost of ending work in process inventory: Total _________ d. Cost of units transferred out: Total ___________
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started