QUESTION 2:

Sabor Company produces 18-ounce boxes of a wheat cereal in three departments: Mixing, Cooking, and Packaging. During August, Sabor produced 150,000 boxes with the following costs:

	Mixing Department	Cooking Department	Packaging Department
Direct materials	$279,300		$122,000		$108,000
Direct labour	35,625		20,000		56,000
Applied overhead	51,000		27,100		76,700

Required:

1. Calculate the costs transferred out of each department.

Mixing department	$___________________
Cooking department	$___________________
Packaging department	$___________________

2. journal entries that reflect these cost transfers.

	(Cost of Goods Sold/Finished Goods/Raw Materials/Work in Process-Cooking/Work in Process-Mixing)	_____
	(Cost of Goods Sold/Finished Goods/Raw Materials/Work in Process-Cooking/Work in Process-Mixing)		_____
	Transferred costs from the mixing department to the cooking department
	(Cost of Goods Sold/Finished Goods/Raw Materials/Work in Process-Cooking/Work in Process-Packaging)	_____
	(Cost of Goods Sold/Finished Goods/Raw Materials/Work in Process-Cooking/Work in Process-Packaging)		_____
	Transferred costs from the cooking department to the packaging department
	(Cost of Goods Sold/Finished Goods/Fixed Assets/Raw Materials/Work in Process-Mixing/Work in Process-Packaging)	_____
	(Cost of Goods Sold/Finished Goods/Raw Materials/Work in Process-Mixing/Work in Process-Packaging)		_____
	Transferred costs from the packaging department to the finished goods

QUESTION 3:

Kinnamon Inc. manufactures bicycle frames in two departments: Cutting and Welding. Kinnamon uses the weighted average method. Manufacturing costs are added uniformly throughout the process. The following are cost and production data for the cutting department for October:

Production:
Units in process, October 1, 40% complete	10,000
Units completed and transferred out	68,000
Units in process, October 31, 60% complete	20,000
Costs:
WIP, October 1	$85,000
Costs added during October	$1,477,000

Required:

Prepare a production report for the cutting department. Round cost per equivalent unit to the nearest cent. Use this rounded amount for further calculations.

Cutting Department
Production Report
For the Month of October (Weighted Average Method)
Unit Information
Physical flow:
Units to account for:	Units
Units in beginning WIP	_______
Units started	_______
Total units to account for	_______
Units accounted for:
Units completed	_______
Units in ending WIP	_______
Total units accounted for	_______
Equivalent units:
Units completed	_______
Units in ending WIP	_______
Total equivalent units	_______
Cost Information
Equivalent units:
	Dollars
Beginning WIP	$_______
Incurred during October	_______
Total costs to account for	$_______
Cost per equivalent unit	$_______
Costs accounted for:
	Transferred Out	Ending Work in Process	Total
Goods transferred out	$_______		$_______
Goods in ending WIP		$_______	_______
Total costs accounted for	$_______	$_______	$_______