Old Country Links, Incorporated, 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:

	Units	Percent Completed
		Mixing	Materials	Conversion
Work in process inventory, September 1	9	100%	60%	50%
Work in process inventory, September 30	9	100%	20%	10%

	Mixing	Materials	Conversion
Work in process inventory, September 1	$ 19,782	$ 108	$ 5,499
Cost added during September	$ 208,878	$ 24,700	$ 155,025

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, 102 batches (i.e., units) were completed and transferred to the Packaging Department.

Required:

1. Determine the Casing and Curing Department's equivalent units of production for mixing, materials, and conversion for the month of September.

2. Compute the Casing and Curing Department's cost per equivalent unit for mixing, materials, and conversion for the month of September.

3. Compute the Casing and Curing Department's cost of ending work in process inventory for mixing, materials, conversion, and in total for September.

4. Compute the Casing and Curing Department's cost of units transferred out to the Packaging Department for mixing, materials, conversion, and in total for September.

5. Prepare a cost reconciliation report for the Casing and Curing Department for September.

Lubricants, Incorporated, produces a special kind of grease that is widely used by race car drivers. The grease is produced in two processing departmentsRefining and Blending. Raw materials are introduced at various points in the Refining Department.

The following incomplete Work in Process account is available for the Refining Department for March:

Work in ProcessRefining Department
Debit		Credit
March 1 balance	33,300	Completed and transferred to Blending	?
Materials	148,600
Direct labor	82,200
Overhead	482,000
March 31 balance	?

The March 1 work in process inventory in the Refining Department consists of the following elements: materials, $7,800; direct labor, $3,900; and overhead, $21,600.

Costs incurred during March in the Blending Department were: materials used, $44,000; direct labor, $17,600; and overhead cost applied to production, $112,000.

Required:

1. Prepare journal entries to record the costs incurred in both the Refining Department and Blending Department during March. Key your entries to the items (a) through (g) below.

Raw materials used in production.

Direct labor costs incurred.

Manufacturing overhead costs incurred for the entire factory, $706,000. (Credit Accounts Payable.)

Manufacturing overhead was applied to production using a predetermined overhead rate.

Units that were complete with respect to processing in the Refining Department were transferred to the Blending Department, $622,000.

Units that were complete with respect to processing in the Blending Department were transferred to Finished Goods, $750,000.

Completed units were sold on account, $1,500,000. The Cost of Goods Sold was $690,000.

2. Post the journal entries from (1) above to T-accounts. The following account balances existed at the beginning of March. (The beginning balance in the Refining Departments Work in Process is given in the T-account shown above.)

Raw materials	$ 211,600
Work in processBlending Department	$ 57,000
Finished goods	$ 18,000