Analyzing process cost elements across product types Mystic Bottling Company bottles popular beverages in the Bottling Department. The beverages are produced by blending concentrate with water and sugar. The concentrate is purchased from a concentrate producer. The concentrate producer sets higher prices for the more popular concentrate flavors. A simplified Bottling Department cost of production report separating the cost of bottling the four flavors follows: Orange Cola Lemon-Lime Root Beer Concentrate $4,625 $129,000 $105,000 $7,600 Water 1,250 30,000 25,000 2,000 Sugar 3,000 72,000 60,000 4,800 Bottles 5,500 132,000 110,000 8,800 Flavor changeover 3,000 4,800 4,000 10,000 Conversion cost 1,750 24,000 20,000 2,800 Total cost transferred to finished goods $19,125 $391,800 $324,000 $36,000 Number of cases 2,500 60,000 50,000 4,000 Beginning and ending work in process inventories are negligible, so they are omitted from the cost of production report. The flavor changeover cost represents the cost of cleaning the bottling machines between production runs of different flavors. A production run of a new flavor is produced after a flavor changeover from the previous flavor. Higher-demand flavors are produced in larger production runs, while smaller-demand flavors are produced in smaller production runs. Determine the cost per case for each of the four flavors. Round your answers to two decimal places. Orange $fill in the blank 1 per case Cola $fill in the blank 2 per case Lemon-Lime $fill in the blank 3 per case Root Beer $fill in the blank 4 per case Complete the following paragraph regarding the comparative cost information and results from above. The cost per case of is significantly above the cost per case of the other three flavors. Based on an analysis of the individual cost elements that determine the total cost divided by the number of cases, it appears that are either bottled in short production runs, meaning more frequent changeovers, or that each changeover is very difficult and expensive. The conversion cost per case is larger because the bottling line rate appears slower for compared to .
Analyzing
Mystic Bottling Company bottles popular beverages in the Bottling Department. The beverages are produced by blending concentrate with water and sugar. The concentrate is purchased from a concentrate producer. The concentrate producer sets higher prices for the more popular concentrate flavors. A simplified Bottling Department cost of production report separating the cost of bottling the four flavors follows:
| Orange | Cola | Lemon-Lime | Root Beer | |||||
| Concentrate | $4,625 | $129,000 | $105,000 | $7,600 | ||||
| Water | 1,250 | 30,000 | 25,000 | 2,000 | ||||
| Sugar | 3,000 | 72,000 | 60,000 | 4,800 | ||||
| Bottles | 5,500 | 132,000 | 110,000 | 8,800 | ||||
| Flavor changeover | 3,000 | 4,800 | 4,000 | 10,000 | ||||
| Conversion cost | 1,750 | 24,000 | 20,000 | 2,800 | ||||
| Total cost transferred to finished goods | $19,125 | $391,800 | $324,000 | $36,000 | ||||
| Number of cases | 2,500 | 60,000 | 50,000 | 4,000 |
Beginning and ending work in process inventories are negligible, so they are omitted from the cost of production report. The flavor changeover cost represents the cost of cleaning the bottling machines between production runs of different flavors. A production run of a new flavor is produced after a flavor changeover from the previous flavor. Higher-demand flavors are produced in larger production runs, while smaller-demand flavors are produced in smaller production runs.
Determine the cost per case for each of the four flavors. Round your answers to two decimal places.
| Orange | $fill in the blank 1 per case |
| Cola | $fill in the blank 2 per case |
| Lemon-Lime | $fill in the blank 3 per case |
| Root Beer | $fill in the blank 4 per case |
Complete the following paragraph regarding the comparative cost information and results from above.
The cost per case of is significantly above the cost per case of the other three flavors. Based on an analysis of the individual cost elements that determine the total cost divided by the number of cases, it appears that are either bottled in short production runs, meaning more frequent changeovers, or that each changeover is very difficult and expensive. The conversion cost per case is larger because the bottling line rate appears slower for compared to .
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