Cravings Cookie Company (CCC) makes low fat cookies. It has three processsing departments - mixing, baking and packaging. The following information pertains to a month for the mixing department, the first process. % Complete Materials 100% Units Conversion Work in Process, beginning Started into production Completed and transferred out Work in Process, ending 16,000 154,000 75% 130,000 100% 25% Costs Work in process beginning |Costs added during the month $ 25,200 2$ 24,800 334,800 238,700 Required (where possible complete your work in the space immediately below each question. If you need more space insert additional rows. Also, you might want to use the production report template): 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 de partment to the baking department. 3 What is the ending balance in the Work in Process Inventory account for the mixing department? What is the journal entry that CCC would need to record the transfer of costs from the mixing department to the baking department?

Cravings Cookie Company (CCC) makes low fat cookies. It has three processsing departments - mixing, baking and packaging. The following information pertains to a month for the mixing department, the first process. % Complete Materials 100% Units Conversion Work in Process, beginning Started into production Completed and transferred out Work in Process, ending 16,000 154,000 75% 130,000 100% 25% Costs Work in process beginning |Costs added during the month $ 25,200 2$ 24,800 334,800 238,700 Required (where possible complete your work in the space immediately below each question. If you need more space insert additional rows. Also, you might want to use the production report template): 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 de partment to the baking department. 3 What is the ending balance in the Work in Process Inventory account for the mixing department? What is the journal entry that CCC would need to record the transfer of costs from the mixing department to the baking department?

Name: Cravings Cookie Company (CCC) makes low fat cookies. It has three pro
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Description: Cravings Cookie Company (CCC) makes low fat cookies. It has three processsing departments - mixing, baking and packaging. The followinginformation pertains to a month for the mixing department, the first process.* CompleteUnitsMaterialsConversionWor

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

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.

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Cravings Cookie Company (CCC) makes low fat cookies. It has three processsing 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
Started into production
Completed and transferred out
Work in Process, ending
16,000
154,000
130,000
100%
75%
100%
25%
Costs
Work in process beginning
Costs added during the month
24
25,200
334,800
24,800
238,700
Required (where possible complete your work in the space immediately below each question. If you need
more space insert additional rows. Also, you might want to use the production report template):
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?

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