Cravings Cookie Company (CCC) makes low-fat cookies. It has three processing departments - mixing, baking, and packaging. The following information pertains to a month for the mixing department, the first process. % Complete Units Materials Conversion Work in Process, beginning 16,000 100% 75% Started into production 154,000 Completed and transferred out 130,000 Work in Process, ending ? 100% 25% Costs Work in process beginning $ 25,200 $ 24,800 Costs added during the month 334,800 238,700 Assume CCC uses the weighted-average method for its process costing system. 1.How many units are in work in process at the end of the month? 2.Prepare a production report for the month that shows equivalent units, cost per equivalent unit and costs transferred out of the mixing department to the baking department. 3.What is the ending balance in the Work in Process Inventory account for the mixing department? 4.What is the journal entry that CCC would need to record the transfer of costs from the mixing department to the baking department?
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Cravings Cookie Company (CCC) makes low-fat cookies. It has three processing departments - mixing, baking, and packaging. The following information pertains to a month for the mixing department, the first process.
| % Complete | |||
| Units | Materials | Conversion | |
| Work in Process, beginning | 16,000 | 100% | 75% |
| Started into production | 154,000 | ||
| Completed and transferred out | 130,000 | ||
| Work in Process, ending | ? | 100% | 25% |
| Costs | |||
| Work in process beginning | $ 25,200 | $ 24,800 | |
| Costs added during the month | 334,800 | 238,700 | |
Assume CCC uses the weighted-average method for its
1.How many units are in work in process at the end of the month?
2.Prepare a production report for the month that shows equivalent units, cost per equivalent unit and costs transferred out of the mixing department to the baking department.
3.What is the ending balance in the Work in Process Inventory account for the mixing department?
4.What is the
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 1 images
