Problem 4-13 (Static) 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	1	100%	90%	80%
Work in process inventory, September 30	1	100%	80%	70%

	Mixing	Materials	Conversion
Work in process inventory, September 1	$ 1,670	$ 90	$ 605
Cost added during September	$ 81,460	$ 6,006	$ 42,490

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, 50 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.

Selzik Company makes cake mixes that go through two processing departmentsBlending and Packaging. The following activity was recorded in the Blending Department during July:

Production data:
Units in process, July 1 (materials 100% complete; conversion 30% complete)	10,000
Units started into production	170,000
Units in process, July 31 (materials 100% complete; conversion 40% complete)	20,000
Cost data:
Work in process inventory, July 1:
Materials cost	$ 8,500
Conversion cost	$ 4,900
Cost added during the month:
Materials cost	$ 139,400
Conversion cost	$ 244,200

All materials are added at the beginning of work in the Blending Department. The company uses the FIFO method of process costing.

Required:

For July:

1. Calculate the Blending Department's equivalent units of production for materials and conversion.
2. Calculate the Blending Department's cost per equivalent unit for materials and conversion.
3. Calculate the Blending Department's cost of ending work in process inventory for materials, conversion, and in total.
4. Calculate the Blending Department's cost of units transferred out to the next department for materials, conversion, and in total.
5. Prepare a cost reconciliation report for the Blending Department.