Old Country Links, Inc., prođuces sausages in three production departments-Mixing, Casing and Curing, and Packaging. In the Mixing Department, meats are prepared and ground and then mixed with spices. The spiced meat mixture is then transferred to the Casing and Curing Department, where the mixture is force- fed into casings and then hung and cured in climate-controlled smoking chambers. In the Packaging Department, the cured sausages are sorted, packed, and labeled. The company uses the weighted-average method in its process costing system. Data for September for the Casing and Curing Department follow: Percent Completed Units Mixing Materials Conversion 100% Work in process inventory, September 1 Work in process inventory, September 30 1 90% 80% 1 100% 80% 70% ..... ... Mixing Materials Conversion Work in process inventory, September 1. $1,670 $90 $605 Cost added during September. $81,460 $6,006 $42,490 Mixing cost represents the costs of the spiced meat mixture transferred in from the Mixing Department. The spiced meat mixture is processed in the Casing and Curing Department in batches; each unit in the above table is a batch and one batch of spiced meat mixture produces a set amount of sausages that are passed on to the Packaging Department. During September, 50 batches (i.e., units) were completed and transferred to the Packaging Department. Required: 1. Determine the Casing and Curing Department's equivalent units of production for mixing, materials, and conversion for the month of September. Do not round off your computations. 2. Compute the Casing and Curing Department's cost per equivalent unit for mixing, materials, and conversion for the month of September. 3. Compute the Casing and Curing Department's cost of ending work in process inventory for mixing, materials, conversion, and in total for September. 4. Compute the Casing and Curing Department's cost of units transferred out to the Packaging Department for mixing, materials, conversion, and in total for September. 5. Prepare a cost reconciliation report for the Casing and Curing Department for September
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.
- Compute the Casing and Curing Department’s cost of units transferred out to the Packaging Department for mixing, materials, conversion, and in total for September.
![**Educational Website Transcription and Explanation:**
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## Process Costing: Weighted-Average Method
**Problem Overview:**
Old Country Links, Inc. operates using a process costing system composed of three production departments: Mixing, Casing and Curing, and Packaging. The company utilizes the weighted-average method for cost calculation. The focus here is on the Casing and Curing Department for September.
### Data for September:
**Work in Process Inventory**
- **September 1 Inventory:**
- Units: 1
- Percent Completed:
- Mixing: 100%
- Materials: 90%
- Conversion: 80%
- **September 30 Inventory:**
- Units: 1
- Percent Completed:
- Mixing: 100%
- Materials: 80%
- Conversion: 70%
**Costs Incurred:**
- **Work in Process Inventory, September 1:**
- Mixing: $1,670
- Materials: $90
- Conversion: $605
- **Costs Added During September:**
- Mixing: $81,460
- Materials: $6,006
- Conversion: $42,490
### Process Description:
In this scenario, the spiced meat mixture transferred from the Mixing Department is processed in batches in the Casing and Curing Department. Each batch consists of one unit of spiced meat, producing sausages for transfer to the Packaging Department. During September, 50 batches were completed and transferred.
### Requirements:
1. **Equivalent Units of Production:**
- Calculate for mixing, materials, and conversion for September without rounding computations.
2. **Cost Per Equivalent Unit:**
- Determine this for each component: mixing, materials, and conversion.
3. **Cost of Ending Work in Process Inventory:**
- Compute this for each component, considering totals for September.
4. **Cost of Units Transferred Out:**
- Calculate for mixing, materials, and conversion to the Packaging Department.
5. **Cost Reconciliation Report Preparation:**
- Prepare a comprehensive report for the Casing and Curing Department's costs in September.
### Explanation of Diagrams and Tables:
- **Inventory Tables:**
- Show the beginning and end work in process inventories with their percentage completions.
- **Cost Data Table:**
- Lists the work in process costs as of](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff8a48265-5016-477e-a187-282a957461b7%2F01a6c0eb-930c-42a3-b1d4-8b054e70635b%2F4nmr8n8_processed.png&w=3840&q=75)
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