Problem 5-18 Interpreting a Report-Weighted-Average Method [LO5-2, LO5-3, LO5-4]

Cooperative San Jos of southern Sonora state in Mexico makes a unique syrup using cane sugar and local herbs. The syrup is sold in small bottles and is prized as a flavoring for drinks and for use in desserts. The bottles are sold for $12 each. The first stage in the production process is carried out in the Mixing Department, which removes foreign matter from the raw materials and mixes them in the proper proportions in large vats. The company uses the weighted-average method in its process costing system.

A hastily prepared report for the Mixing Department for April appears below:

Units to be accounted for:
Work in process, April 1 (materials 90% complete; conversion 80% complete)	6,100
Started into production	32,100
Total units to be accounted for	38,200
Units accounted for as follows:
Transferred to next department	34,200
Work in process, April 30 (materials 75% complete; conversion 50% complete)	4,000
Total units accounted for	38,200

Cost Reconciliation
Cost to be accounted for:
Work in process, April 1	$	20,984
Cost added during the month		121,238
Total cost to be accounted for	$	142,222
Cost accounted for as follows:
Work in process, April 30	$	10,210
Transferred to next department		132,012
Total cost accounted for	$	142,222