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Problem 4-13 (Algo) Comprehensive Problem; Second Production Department-Weighted-Average Method [LO4-2, LO4-3, LO4-4, LO4-5] Old Country Links, Incorporated, produces sausages in three production departmentsMixing, Casing and

Problem 4-13 (Algo) Comprehensive Problem; Second Production Department-Weighted-Average Method [LO4-2, LO4-3, LO4-4, LO4-5]

Old Country Links, Incorporated, produces sausages in three production departmentsMixing, Casing and Curing, and Packaging. In the Mixing Department, meats are prepared, ground and mixed with spices. The spiced meat mixture is transferred to the Casing and Curing Department, where the mixture is force-fed into casings and 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 of process costing. Data for September for the Casing and Curing Department follow:

Units Percent Completed
Mixing Materials Conversion
Work in process inventory, September 1 3 100% 60% 50%
Work in process inventory, September 30 3 100% 20% 10%
Mixing Materials Conversion
Work in process inventory, September 1 $ 5,544 $ 24 $ 1,383
Cost added during September $ 171,906 $ 21,522 $ 141,837

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:

For September:

  1. Determine the Casing and Curing Department's equivalent units of production for mixing, materials, and conversion.
  2. Compute the Casing and Curing Department's cost per equivalent unit for mixing, materials, and conversion.
  3. Compute the Casing and Curing Department's cost of ending work in process inventory for mixing, materials, conversion, and in total.
  4. Compute the Casing and Curing Department's cost of units transferred out to the Packaging Department for mixing, materials, conversion, and in total.
  5. Prepare a cost reconciliation report for the Casing and Curing Department.

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