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
Chapter1: Financial Statements And Business Decisions
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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
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