Process Costing

Sweetooth manufactures cakes in two departments, Mixing and Baking, using a process cost system. Data for each department for 20X3 are as follows:

Mixing Baking

Units: Work-in-process 1/1/X3 3,000 6,000

Started in process 49,000 ?

Completed and transferred 45,000 40,000

Work-in-process 12/31/X3 5,000 10,000

Costs: Work-in-process 1/1/X3

Transferred-in $ n/a $ 9,195

Materials 11,710 -0-

Conversion 2,926 2,524

Added to department

Transferred-in n/a ?

Materials 29,890 70,000

Conversion 45,374 75,190

Other: Materials added (% conversion) 0% 75%

Conversion complete

Beginning work-in-process 2/3 25%

Ending work-in-process 50% 60%

Inspection (% conversion) 100% 100%

Normal spoilage (% of units started) 3% 2%

The ingredients (flour, mild, eggs, etc.) are added at the beginning of the production process in the Mixing Department (i.e., 0% conversion). The cakes are baked in the Baking Department, after which the icing is applied (i.e., at 75% conversion).

Requirements:

Use Microsoft Excel to prepare a cost of production report template for each department to be used for any data for any accounting period:

1. Enter the data above at the top of a spreadsheet exactly as it appears.
2. Prepare a cost of production report for each department.
   1. Use the format presented in the snapshot of the solution. You will need to modify the format to account for potential normal and abnormal spoilage.
   2. Use IF statements to make it possible to present the information under weighted average or FIFO for both departments.
   3. Report your answers using the weighted average method for the Mixing Department and the FIFO method for the Baking Department