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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 Conversion cost Total cost transferred to finished goods Number of cases 2,500 3,000 1,750 $19,125 $391,800 60,000 4,800 4,000 10,000 24,000 20,000 $324,000 2,800 $36,000 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 Cola Lemon-Lime Root Beer per case per case per case per case

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 Conversion cost Total cost transferred to finished goods Number of cases 2,500 3,000 1,750 $19,125 $391,800 60,000 4,800 4,000 10,000 24,000 20,000 $324,000 2,800 $36,000 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 Cola Lemon-Lime Root Beer per case per case per case per case

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 2MAD: Analyzing process cost elements across product types Mystic Bottling Company bottles popular...
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Analyze Mystic Bottling Company's process costs 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 Sugar 1,250 3,000 30,000 25,000 2,000 72,000 60,000 4,800 Bottles Flavor changeover Conversion cost 5,500 132,000 3,000 4,800 1,750 110,000 8,800 4,000 10,000 24,000 20,000 < Total cost transferred to finished goods Number of cases $19,125 $391,800 2,500 60,000 $324,000 2,800 $36,000 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 Cola Lemon-Lime per case per case per case Root Beer per case Previous Novt
Transcribed Image Text:Analyze Mystic Bottling Company's process costs 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 Sugar 1,250 3,000 30,000 25,000 2,000 72,000 60,000 4,800 Bottles Flavor changeover Conversion cost 5,500 132,000 3,000 4,800 1,750 110,000 8,800 4,000 10,000 24,000 20,000 < Total cost transferred to finished goods Number of cases $19,125 $391,800 2,500 60,000 $324,000 2,800 $36,000 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 Cola Lemon-Lime per case per case per case Root Beer per case Previous Novt
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