Question 4

Yarra Valley, manufactures convenience foods, including potato chips and corn chips. Production of corn chips occurs in four departments: cleaning, mixing, cooking, and drying and packaging. Consider the drying and packaging department, where direct materials (packaging) are added at the end of the process. Conversion costs are added evenly during the process. The accounting records of a Yarra Valley plant provide the following information for corn chips in its drying and packaging department during a weekly period (week 37):

Physical Transferred- Direct Conversion Units In Costs Materials Costs (Cases) Beginning work in processa 1,200 $26,750 $0 $4,020 Transferred in during week 37 from 4200 Completed during week 37 4,000 Ending work in process, week 37b 1,400 Total costs added during week 37 $91,510 $23,000 $27,940 *Degree of completion: transferred-in costs, 100%; direct materials, 0%; conversion costs, 25%. Degree of completion: transferred-in costs, 100%; direct materials, 0%; conversion costs, 50%