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: Concentrate Lemon-Lime Root Beer $7,600 2,000 4,800 132,000 8,800 4,800 10,000 24,000 2,800 $391,800 $36,000 Number of cases 2,500 60,000 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 per case Cola Water Sugar Bottles Flavor changeover Conversion cost Total cost transferred to finished goods Lemon-Lime Root Bear $ d per case per case Orange per case Cola $129,000 30,000 72,000 $4,625 1,250 3,000 5,500 3,000 1,750 $19,125 $105,000 25,000 60,000 110,000 4,000 20,000 $324,000
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: Concentrate Lemon-Lime Root Beer $7,600 2,000 4,800 132,000 8,800 4,800 10,000 24,000 2,800 $391,800 $36,000 Number of cases 2,500 60,000 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 per case Cola Water Sugar Bottles Flavor changeover Conversion cost Total cost transferred to finished goods Lemon-Lime Root Bear $ d per case per case Orange per case Cola $129,000 30,000 72,000 $4,625 1,250 3,000 5,500 3,000 1,750 $19,125 $105,000 25,000 60,000 110,000 4,000 20,000 $324,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Chapter 3 Homework
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:
Concentrate
Water
Sugar
Bottles
Orange
$4,625
1,250
3,000
5,500
3,000
1,750
Total cost transferred to finished goods
$19,125
Number of cases
2,500
50,000
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
Flavor changeover
Conversion cost
Cola
Lemon-Lime
Root Beer
$
S
per case
per case
per case
eBook
per case
Cola
$129,000
30,000
72,000
132,000
4,800
24,000
$391,800
Lemon-Lime
60,000
Root Beer
$105,000
25,000
60,000
110,000
4,000
20,000
$324,000
$7,600
2,000
4,800
8,800
10,000
2,800
$36,000
4,000
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