Answered Essay: Old Country Links Inc. produces sausages in three production departments—Mixing, Casing a

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:

units mixing materials conversion

Work in process inventory, September 1	6	100%	60%	50%
Work in process inventory, September 30	6	100%	20%	10%

mixing material conversion

Work in process inventory, September 1	$	8,874	$	366	$	1,056
Cost added during September	$	189,846	$	24,412	$	154,176

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, 138 batches (i.e., units) were completed and transferred to the Packaging Department.

1a. Determine the equivalent units for September for mixing, materials, and conversion. (Round your answers to 1 decimal place.)

———————————————	mixing	material	conversion
equivalents units of production

2a. Compute the costs per equivalent unit for September for mixing, materials, and conversion. (Round your intermediate calculations to 1 decimal place. Round your final answers to the nearest whole dollar.)

—————-	mixing	material	conversion
cost equivalent per unit

3a.Determine the total cost of ending work in process inventory and the total cost of units transferred to the Packaging Department in September. (Round your intermediate calculations to 1 decimal place. Round your answers to the nearest whole dollar.)

——–	total
cost of ending work in process investory
cost of units transferred out

4a. Prepare a cost reconciliation report for the Casing and Curing Department for September. (Round your final answers to the nearest whole dollar.)

cost to be ccounted for:

cost accounted for s follows:

Expert Answer

Answer 1 – 4.

Weighted Average Method

Particulars		Equivalent Units
Particulars	Physical Units	Mixing	Materials	Conversion Costs
Units to be accounted for
Work in process – Beginning	6.0
Started into production	138.0
Total units	144.0
Units accounted for
Transferred out	138.0	138.0	138.0	138.0
Work in process, Ending	6.0	6.0	1.2	0.6
(100% – Mixing, 20% – materials, 10% conversion costs)
Equivalent units accounted for	144.0	144.0	139.2	138.6

Costs
Unit costs	Mixing	Materials	Conversion	Total

WIP, Beginning	8,874.0	366.0	1,056.0	10,296.0
Costs incurred in September	189,846.0	24,412.0	154,176.0	368,434.0
Total Costs	198,720.0	24,778.0	155,232.0	378,730.0
Equivalent units	144.0	139.2	138.6
Costs per Equivalent Units	1,380.0	178.0	1,120.0	2,678.0

Cost Assignment	Materials		Conversion	Total
Good Units completed & Transferred out (138 Units)	190,440.0	24,564.4	154,560.0	369,564.4
Total Cost of goods completed & Transferred out	190,440.0	24,564.4	154,560.0	369,564.4


Work in Process – ending Inventory	8,280.0	213.6	672.0	9,165.6

Total Cost accounted for	198,720.0	24,778.0	155,232.0	378,730.0

Costs to be accounted for
Work in process, Beginning				10,296.0
Started into production				368,434.0
Total costs				378,730.0
Cost Reconciliation Schedule
Costs accounted for
Transferred out				369,564.4
Work in process, Ending
Mixing			8,280.0
Materials			213.6
Conversion costs			672.0	9,165.6
Total costs				378,730.0

Answered Essay: Old Country Links Inc. produces sausages in three production departments—Mixing, Casing a

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