Cooperative San José of southern Sonora state in Mexico makes a unique syrup using cane sugar and local herbs. The syrup is sold in small bottles and is prized as a flavoring for drinks and for use in desserts. The bottles are sold for $12 each. The first stage in the production process is carried out in the Mixing Department, which removes foreign matter from the raw materials and mixes them in the proper proportions in large vats. The company uses the weighted average method in its process costing system. A hastily prepared report for the Mixing Department for April appears below: Units to be accounted for: Work in process, April 1 (materials 90% complete; conversion 80% complete) Started into production Total units to be accounted for Units accounted for as follows: Transferred to next department Work in process, April 30 (materials 75% complete; conversion 50% complete) Total units accounted for Cost Reconciliation Cost to be accounted for: Work in process, April 1 Cost added during the month $ 28,428 132,211 $160 630 6,900 31,300 38,200 29,800 8,400 38,200

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Chapter1: Financial Statements And Business Decisions
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1. What were the Mixing Department's equivalent units of production for materials and conversion for April? 2. What were the Mixing Department's cost per equivalent unit for materials and conversion
for April? The beginning inventory consisted of the following costs: materials, $19, 251; and conversion cost, $9,177. The costs added during the month consisted of: materials, $88, 688; and conversion
cost, $43,523. 3. How many of the units transferred out of the Mixing Department in April were started and completed during that month? 4. The manager of the Mixing Department stated, "Materials
prices jumped from about $2.60 per unit in March to $3.10 per unit in April, but due to good cost control I was able to hold our materials cost to less than $3.10 per unit for the month." Should this
manager be rewarded for good cost control?
Transcribed Image Text:1. What were the Mixing Department's equivalent units of production for materials and conversion for April? 2. What were the Mixing Department's cost per equivalent unit for materials and conversion for April? The beginning inventory consisted of the following costs: materials, $19, 251; and conversion cost, $9,177. The costs added during the month consisted of: materials, $88, 688; and conversion cost, $43,523. 3. How many of the units transferred out of the Mixing Department in April were started and completed during that month? 4. The manager of the Mixing Department stated, "Materials prices jumped from about $2.60 per unit in March to $3.10 per unit in April, but due to good cost control I was able to hold our materials cost to less than $3.10 per unit for the month." Should this manager be rewarded for good cost control?
Cooperative San José of southern Sonora state in Mexico makes a unique syrup using cane sugar and local herbs. The syrup is sold in
small bottles and is prized as a flavoring for drinks and for use in desserts. The bottles are sold for $12 each. The first stage in the
production process is carried out in the Mixing Department, which removes foreign matter from the raw materials and mixes them in
the proper proportions in large vats. The company uses the weighted-average method in its process costing system.
A hastily prepared report for the Mixing Department for April appears below:
Units to be accounted for:
Work in process, April 1 (materials 90% complete; conversion
80% complete)
Started into production
6,900
31,300
Total units to be accounted for
38,200
Units accounted for as follows:
Transferred to next department
29,800
Work in process, April 30 (materials 75% complete; conversion
50% complete)
8,400
Total units accounted for
38,200
Cost Reconciliation
Cost to be accounted for:
Work in process, April 1
Cost added during the month
Total cost to be accounted for
Cost accounted for as follows:
Work in process, April 30
Transferred to next department
Total cost accounted for
$ 28,428
132,211
$ 160,639
$ 25,347
135,292
$ 160,639
Management would like some additional information about Cooperative San José's operations.
Required
Transcribed Image Text:Cooperative San José of southern Sonora state in Mexico makes a unique syrup using cane sugar and local herbs. The syrup is sold in small bottles and is prized as a flavoring for drinks and for use in desserts. The bottles are sold for $12 each. The first stage in the production process is carried out in the Mixing Department, which removes foreign matter from the raw materials and mixes them in the proper proportions in large vats. The company uses the weighted-average method in its process costing system. A hastily prepared report for the Mixing Department for April appears below: Units to be accounted for: Work in process, April 1 (materials 90% complete; conversion 80% complete) Started into production 6,900 31,300 Total units to be accounted for 38,200 Units accounted for as follows: Transferred to next department 29,800 Work in process, April 30 (materials 75% complete; conversion 50% complete) 8,400 Total units accounted for 38,200 Cost Reconciliation Cost to be accounted for: Work in process, April 1 Cost added during the month Total cost to be accounted for Cost accounted for as follows: Work in process, April 30 Transferred to next department Total cost accounted for $ 28,428 132,211 $ 160,639 $ 25,347 135,292 $ 160,639 Management would like some additional information about Cooperative San José's operations. Required
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