Question

Old Country 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 September for the Casing and Curing Department follow. Percent Completed Units Mixing Materials Conversion Work in process inventory, September 1 7 100% 60% 50% Work in process inventory, September 307 100% 20% 10% Mixing Materials Conversion Work in process inventory, September 5 13.692 3 35 53,563 Cost added during September $285,548 $ 19,947 5163,181 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 109 batches (ie. 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. Required 1 Required 2 Required 3 Required 5 Required 4 Prepare a cost reconciliation report for the Casing and Curing Department for September (Round your intermediate calculations to I decimal place and your final answers to the nearest whole dollar amount.) Casing and Curing Department Cost Reconciliation Costs to be scounted for Costs accounted Prov

Answer 1

1
	Mixing	Materials	Conversion
Units completed and transferred out	109	109	109
Work in process, ending:	7	1.4	0.7
Equivalent units of production	116.0	110.4	109.7
2
	Mixing	Materials	Conversion
Work in process, September 1	13692	35	3563
Cost added during September	205548	19947	163181
Total costs	219240	19982	166744
Divide by Equivalent units of production	116.0	110.4	109.7
Cost per Equivalent unit	1890	181	1520
3
	Mixing	Materials	Conversion	Total
Work in process, ending units	7	1.4	0.7
X Cost per Equivalent unit	1890	181	1520
Cost of ending work in process inventory	13230	253	1064	14547
4
	Mixing	Materials	Conversion	Total
Units completed and transferred out	109	109	109
X Cost per Equivalent unit	1890	181	1520
Cost of Units completed and transferred out	206010	19729	165680	391419
5
Cost Reconciliation:
Cost to be accounted for:
Cost of Beginning work in Process inventory	17290
Cost added during September	388676
Total Cost to be accounted for	405966
Cost accounted for as follows:
Cost of Units completed and transferred out	391419
Cost of ending work in process inventory	14547
Total Cost accounted for	405966