PROBLEM
4–17 Comprehensive Problem; Second Production Department—Weighted-Average Method
[LO2, LO3, LO4, LO5]
P4–17
Bohemian Links Inc. produces sausages in three production departments—Mixing,
Casing and Curing,
and Packaging. In the Mixing Department, meats are prepared and ground and then
mixed with
spices. The spiced meat mixture is then transferred to the Casing and Curing
Department, where
the mixture is force-fed into casings and then hung and cured in
climate-controlled smoking chambers.
In the Packaging Department, the cured sausages are sorted, packed, and
labeled. The company
uses the weighted-average method in its process costing system. Data for April
for the Casing
and Curing Department follow:
Percent Completed
Units Mixing Materials Conversion
Work in process inventory, April
1 . . . . . . . . . 1 100% 60% 50%
Work in process inventory, April
30 . . . . . . . . 1 100% 20% 10%
Mixing
Materials Conversion
Work in process inventory, April
1 . . . . . . . . . $1,640 $26 $105
Cost added during April . . . . .
. . . . . . . . . . . $94,740
$8,402 $61,197
Mixing
cost represents the costs of the spiced meat mixture transferred in from the
Mixing Department. The spiced meat mixture is processed in the Casing and
Curing Department in batches; each unit in the above table is a batch, and one
batch of spiced meat mixture produces a set amount of sausages
that are passed on to the Packaging Department. During April, 60 batches (i.e.,
units) were completed and transferred to the Packaging Department.
Required:
1.
Determine the equivalent units for April for mixing, materials, and conversion.
Do not round off
your computations.
2.
Compute the costs per equivalent unit for April for mixing, materials, and
conversion.
3.
Determine the total cost of ending work in process inventory and the total cost
of units transferred to the Packaging Department in April.
4.
Prepare a cost reconciliation report for the Casing and Curing Department for
April.
TUTORIAL
PREVIEW
2.
Costs
per Equivalent Unit
Mixing
|
Materials
|
Conversion
|
|
Cost of
beginning work in process inventory
|
$ 1,640
|
$
26
|
$
105
|
Cost added
during the during
|
94,740
|
8,402
|
61,197
|
File name: P4-17 Bohemian.xls File type: XLS PRICE: $8
