Question
Question: Prepare a cost of production report for september 20X8. The company uses weighted averages. Problem: Martha's Cookie Company produces cookies in two departments; mixing
Question:
Prepare a cost of production report for september 20X8. The company uses weighted averages.
Problem:
Martha's Cookie Company produces cookies in two departments; mixing and finishing. In mixing, all ingredients except nuts are added at the start of production. In finishing, nuts is added and then the mixture is placed into containers. Adding the nuts to the basic cookie mixture increases the volume transferred in by the number of gallons of nuts added. Any spoilage that occurs is in the Finishing Department. Spoilage is detected just before the cookies are placed into containers or at the 98% completion point. All spoilage is abnormal.
Finishing Department
BWIP (100% nuts, 0% container, 30% CC) 5,000 gallons
Gallons transferred in 5,500
Gallons of nuts added 1,200
EWIP (100% nuts, 0% container, 60% CC) 1,700 gallons
Gallons transferred out 9,000
abnormal spoilage 1,000
BWIP Costs:
Transferred IN $ 9,700
Nuts 10,500
CC (Conv. Cost) 15,000
Current Costs:
Transferred in $ 12,400
Nuts 54,000
Containers 11,000
CC 98,000
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