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Old Country Links, Incorporated, produces sausages in three production departmen
Old Country Links, Incorporated, produces sausages in three production departments—Mixing, Casing and Curing, and Packaging. In the Mixing Department, meats are prepared, ground and mixed with spices. The spiced meat mixture is transferred to the Casing and Curing Department, where the mixture is force-fed into casings and 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 of process costing. Data for September for the Casing and Curing Department follow:
UnitsPercent Completed
MixingMaterialsConversion
Work in process inventory, September 19100%60%50%
Work in process inventory, September 309100%20%10%
MixingMaterialsConversion
Work in process inventory, September 1$ 19,782$ 108$ 5,499
Cost added during September$ 208,878$ 24,700$ 155,025
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, 102 batches (i.e., units) were completed and transferred to the Packaging Department.
Required:
For September:
Determine the Casing and Curing Department’s equivalent units of production for mixing, materials, and conversion.
Compute the Casing and Curing Department’s cost per equivalent unit for mixing, materials, and conversion.
Compute the Casing and Curing Department’s cost of ending work in process inventory for mixing, materials, conversion, and in total.
Compute the Casing and Curing Department’s cost of units transferred out to the Packaging Department for mixing, materials, conversion, and in total.
Prepare a cost reconciliation report for the Casing and Curing Department
MixingMaterialsConversion
Equivalent units of production
MixingMaterialsConversion
Cost per equivalent unit
MixingMaterialsConversionTotal
Cost of ending work in process inventory
MixingMaterialsConversionTotal
Cost of units transferred out
Casing and Curing Department
Cost Reconciliation
Costs to be accounted for:
Total cost to be accounted for$
Costs accounted for as follows:
Total cost accounted for$
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