Process Costing The goal of this assignment is to design a spreadsheet to compute product costs for Healthy Harvest Bakery. The bakery uses a FIFO process costing system. Healthy Harvest Bakery makes breads using only natural ingredients and no added fats. The bakery makes four varieties of breads: white, wheat, sourdough and raisin. Your task is to determine the cost of raisin bread made during January. The raisin bread is made in two departments: baking and packaging. In baking, the ingredients are mixed and the bread is baked. Baked loaves are then moved to packaging, where they are allowed to cool before placing them in a plastic wrapper. The basic ingredients (flour, yeast, etc.) are added to the bread at the start of production in the baking department. Raisins are added to the bread in the baking department after the basic ingredients have been mixed; this occurs when the baking department is one-fourth complete with their work. The plastic wrapper is added at the end of the production process in the packaging department, after the bread has cooled. Conversion costs are incurred evenly throughout the production process in both departments. Your workbook should consist of sheets: 1. Input Sheet 2. Baking Department Cost of Production 3. Packaging Department Cost of Production The spreadsheet should be designed so that information is added into the Input Sheet only. All information in Baking and Packaging should be either references or formulas. The input section of your spreadsheet should contain the following data:

Your spreadsheet should produce a Cost of Production Report for each department (baking & packaging). When formatting your spreadsheet, format all numbers representing dollar amounts for two decimals; format all numbers representing units to zero decimal places. Make sure that your spreadsheet is flexible enough to work for any amount of units at any stage of completion. (For example, be sure the spreadsheet still works if the units in the baking department's beginning inventory are 20% complete). Hint: this will require IF functions.

Excel: Input sheet

Excel: Baking department

Excel: packaging department

% complete 30% Baking Department # units Beginning WIP Inventory 120 Units Completed 5,000 Ending WIP Inventory 80 15% Cost Data: Beginning WIP Inventory Balance * Basic Ingredients used this month Raisins used this month Conversion Costs incurred this month $ 58 990 680 2,400 *Beginning WIP Costs consist of $24 for basic ingredients, $16 for raisins, and $18 for conversion costs. Packaging Department #units Beginning WIP Inventory Ending WIP Inventory 50 75 % complete 80% 50% Cost Data: Beginning WIP Inventory Balance ** $ 67 Wrappers used this month 150 Conversion Costs incurred this month 500 **Beginning WIP Costs consist of $62 for costs transferred in from Baking (the prior depart.) and $5 for conversion costs. 5 Baking Department 6 Unit Data Units % Complete 7 8 8 Beginning WIP Inventory Units Completed Ending WIP Inventory 9 10 11 Cost $ Begin WIP Cost $ Current 12 Cost Data 13 Basic Ingredients 14 Raisens 15 Conversion $58 $4,070 Units % Complete 16 17 18 Packaging Department 19 Unit Data 20 Beginning WIP Inventory 21 Units Completed Ending WIP Inventory 23 22 Cost $ Begin WIP Cost $ Current 24 Cost Data 25 Transferred In Wrappers 26 27 Conversion 28 $67 $650 29 3 January 4 Units (Step 1) Basic Ingredients 5 UNITS Raisins Conversion 7 6 Units charged to production Inventory in process, Beginning Started in Production During Month Total units accounted for by department 9 10 Whole Units 11 Units to be assigned cost 12 Beg WIP 13 Started and Completed End WIP 15 Total units to be assigned cost 14 4,976 16 17 18 19 Examples of IF Formulas Example of IFS =IF('Input Sheet!D6>0.25,0,B17) Example: 1 =B12*(1-'Input Sheet!D7) Total Cost Raisins Conversion $ $ #DIV/0! #DIV/0! col 0.821 Basic 20 Cost Ingredients 21 Unit Cost (Step 4) 22 Beginning Work in Process 23 Cost Added During Month 24 Total Cost to Account For 25 Total Equivalent Units 26 Cost Per Equivalent Unit #DIV/0! 27 Cost allocated to completed or partially 28 completed units (Step 5) 29 Inventory in process, Beginning - balance 30 To complete inventory in process 31 Started and completed in month 32 Transferred out during month 33 Inventory in process, End of month 34 Total cost assigned to department 35 Innut Shoot Dalrina Donartment FA $ $ $ $ 4,106.24 21.76 4,128.00 DanDonartront January 4 Equivalent Units (Step 3) Tranfered In Wrapper Conversion Units (Step 1) 5 UNITS 7 6 Units charged to production Inventory in process, Beginning 8 Started in Production During Month Total units accounted for by department 00 9 10 Whole Units 11 Units to be assigned cost 12 Beg WIP 13 Started and Completed 14 End WIP 15 Total units to be assigned cost 16 17 18 19 4,990 Cost Tranfered In Total Cost Wrapper Conversion $ 4,106.24 #DIV/0! #DIV/0! #DIV/0! #DIV/0! 20 Cost 21 Unit Cost (Step 4) 22 Beginning Work in Process 23 Cost Added During Month 24 Total Cost to Account For 25 Total Equivalent Units 26 Cost Per Equivalent Unit 27 Cost allocated to completed or partially 28 completed units (Step 5) 29 Inventory in process, Beginning - balance To complete inventory in process 31 Started and completed in month 32 Transferred out during month 33 Inventory in process, End of month Total cost assigned to department 35 Input Sheet Baking Department 30 $ $ $ 4,779.67 $ 43.57 $ 4,823.24 34 Packaging Department