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:
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.
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.
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