Myers Treats makes institutional cakes. Finished cakes must pass through 2 departments: Mixing and Baking. Cake batter is processes in Mixing dept and transferred to Baking dept. There were 500 gallons of partially mixed batter in the Mixing Dept inventory on Aug 1. The batter was 100% complete with respect to direct materials but only 30% with respect to conversion. Manufacturing costs assigned to the inventory carried over from July totaled $1800. During August, mixing dept started 11,500 new gallons of batter. August direct materials cost in the mixing dept totaled $34, 500 and conversion costs totaled $22,800. Ending inventory on Aug 31 consisted of 600 partially mixed batter. These units were 100% complete with respect to direct materials and 25% complete with respect to conversion. a. Make a schedule showing (1) gallons of mix transferred from mixing to baking in august and (2) gallons of mix started and completed by the mixing dept in August b. Compute the equivalent units of input resources for the mixing dept in august c. Compute the cost per equivalent unit of input resources for the mixing dept for August d. Prepare the summary journal entry required to transfer the cost of fully mixed batter from the mixing dept to the baking dept in August e. Compute the total cost assigned to the mixing dept's ending inventory on Aug 31 My answer so far for A: Beginning work in process, Aug 1 500 Units started by mixing dept in Aug 11,500 Total units in process during Aug 12,000 Ending work in Process Aug 31 (600) Units transferred to the Baking Dept in Aug 11,400 Beginning work in process, Aug 1 ?? Units started and completed in Aug ?? Please answer A-E
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.
Myers Treats makes institutional cakes. Finished cakes must pass through 2 departments: Mixing and Baking. Cake batter is processes in Mixing dept and transferred to Baking dept. There were 500 gallons of partially mixed batter in the Mixing Dept inventory on Aug 1. The batter was 100% complete with respect to direct materials but only 30% with respect to conversion.
a. Make a schedule showing (1) gallons of mix transferred from mixing to baking in august and (2) gallons of mix started and completed by the mixing dept in August
b. Compute the equivalent units of input resources for the mixing dept in august
c. Compute the cost per equivalent unit of input resources for the mixing dept for August
d. Prepare the summary
e. Compute the total cost assigned to the mixing dept's ending inventory on Aug 31
My answer so far for A:
| Beginning work in process, Aug 1 | 500 |
| Units started by mixing dept in Aug | 11,500 |
| Total units in process during Aug |
12,000
|
| Ending work in Process Aug 31 | (600) |
| Units transferred to the Baking Dept in Aug | 11,400 |
| Beginning work in process, Aug 1 | ?? |
| Units started and completed in Aug | ?? |
Please answer A-E
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