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Comprehensive Problem Second Production Department Weighted-Average Method LO2 LO3 LO4 LO5 Bohemian Links Inc. produces sausages in three production departments Mixing Casing and Curing

Comprehensive Problem; Second Production Department—Weighted-Average Method [LO2, LO3, LO4, LO5]

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:

 

 

 

Mixing cost represents the costs of the spiced meat mixture transferred in from the Mixing Depart- ment. 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 trans- ferred to the Packaging Department in April.

4,     Prepare a cost reconciliation report for the Casing and Curing Department for April.

Jun 27 2020 View more View Less

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