Question

Old Country Links, Inc., produces sausages in three production departments-Moting, 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 September for the Casing and Curing Department follow: Work in process inventory, September 1 Work in process inventory, September 30 Percent Completed Units Mixing Materials Conversion 100 605 50% 100% 20% 10% Work in process inventory, September 1 Cost added during September Mixing $ 18.864 $ 276,546 Materials Conversion $ 24 $ 1,648 $ 20,573 $144,512 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 September, 121 batches fie. units) were completed and transferred to the Packaging Department. Required: 1. Determine the Casing and Curing Department's equivalent units of production for mixing, materials, and conversion for the month of September 2. Compute the Casing and Curing Department's cost per equivalent unit for mixing, materials, and conversion for the month of September 3. Compute the Casing and Curing Department's cost of ending work in process inventory for mixing, materials, conversion, and in total for September 4. Compute the Casing and Curing Department's cost of units transferred out to the Packaging Department for mixing, materials, conversion, and in total for September 5. Prepare a cost reconciliation report for the Casing and Curing Department for September Complete this question by entering your answers in the tabs below.

Answer 1

1
	Mixing	Materials	Conversion
Units completed and transferred out	121	121	121
Work in process, ending	8	1.6	0.8
Equivalent units of production	129.0	122.6	121.8
2
	Mixing	Materials	Conversion
Work in process, September 1	18864	24	1648
Cost added during September	276546	20573	144512
Total costs	295410	20597	146160
Divide by Equivalent units of production	129.0	122.6	121.8
Cost per Equivalent unit	2290	168	1200
3
	Mixing	Materials	Conversion	Total
Work in process, ending units	8	1.6	0.8
X Cost per Equivalent unit	2290	168	1200
Cost of ending work in process inventory	18320	269	960	19549
4
	Mixing	Materials	Conversion	Total
Units completed and transferred out	121	121	121
X Cost per Equivalent unit	2290	168	1200
Cost of Units completed and transferred out	277090	20328	145200	442618
5
Cost Reconciliation:
Cost to be accounted for:
Cost of Beginning work in Process inventory	20536	=18864+24+1648
Cost added to production during month	441631	=276546+20573+144512
Total Cost to be accounted for	462167
Cost accounted for as follows:
Cost of Units completed and transferred out	442618
Cost of ending work in process inventory	19549
Total Cost accounted for	462167