Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Q3 for the project from Intermediate management accounting course. Any help with the solution please? POLO Question 3 (20 marks) The Farad Old-Fashioned Soda Company

image text in transcribed

Q3 for the project from Intermediate management accounting course. Any help with the solution please?

POLO Question 3 (20 marks) The Farad Old-Fashioned Soda Company (Farad) makes a line of old-fashioned sodas for sale in grocery stores. The Tonic Water flavour goes through the following process: All the raw materials except for the quinine and the carbonated water are mixed in the Mixing department to create the flavouring syrup. The syrup then goes to the Carbonation department, where the carbonated water is added. At the end of this process, the quinine is added. Then, the product moves to the Canning department, where it is canned and boxed. Each box contains 24 cans, and each can contains 500 millilitres. On June 1, 2,480,000 litres were in work-in-process (WIP) in the Mixing department. These were 30% complete as to conversion costs: 100% of raw materials were added at the beginning of the process in this department. On June 30, 2,200,000 litres were in WIP. During June, 11,000,000 litres were started into the process. A normal spoilage rate for the Mixing department is 0.1% of good units transferred to Carbonation. At the end of the month, there were 12,000 litres of spoiled product. The ending WIP was 60% complete as to conversion costs. When the product is 50% complete as to conversion costs, it is tested for quality to determine the spoilage. Farad uses the first in, first out (FIFO) method of process costing. Costs for the month for the Mixing department are as follows: In opening WIP: Raw material $17,240 Conversion costs $125,600 Costs added during the month: Raw material $276,785 Conversion costs $1,236,544 Required: Produce the process cost report for the month of June for the Mixing department for Farad

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

IFRS edition volume 2

978-0470613474, 470613475, 978-0470616314

More Books

Students also viewed these Accounting questions