AAA Inc. produces chocolate cakes in one standard size it follows a stage of production from mixing,baking, and decorating It observes average costing. All materials are added at the start of in the mixingand decorating stage while no materials are added in the baking stage.At the start of the month of June, the following information are availableJune BeginningMixingBakingDecoratingUnits5001,000100Materials cost2,500200Conversion costCost for previous process5,0009,0002,00010,0002,000At the end of the month of June, the following information are availableJune BeginningMixingBakingDecoratingUnits600900200Percentage complete50%80%60%Within the month of June, a total of 3,000 units were started and the total cost spent for the entiremonth are as follows:Month of JuneMaterials costConversion costMixingBakingDecorating15,0006,0007,06011,00028,200Waste and spoilage are ignored in this process.Requirement: Prepare a cost of production report for mixing department.

AAA Inc produces chocolate cake in standard size through 3 processes of mixing, baking and…

Answered: Prepare a cost of production report for…

Business

Accounting

Prepare a cost of production report for mixing department.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.

Question

AAA Inc. produces chocolate cakes in one standard size it follows a stage of production from mixing,
baking, and decorating It observes average costing. All materials are added at the start of in the mixing
and decorating stage while no materials are added in the baking stage.
At the start of the month of June, the following information are available
June Beginning
Mixing
Baking
Decorating
Units
500
1,000
100
Materials cost
2,500
200
Conversion cost
Cost for previous process
5,000
9,000
2,000
10,000
2,000
At the end of the month of June, the following information are available
June Beginning
Mixing
Baking
Decorating
Units
600
900
200
Percentage complete
50%
80%
60%
Within the month of June, a total of 3,000 units were started and the total cost spent for the entire
month are as follows:
Month of June
Materials cost
Conversion cost
Mixing
Baking
Decorating
15,000
6,000
7,060
11,000
28,200
Waste and spoilage are ignored in this process.
Requirement: Prepare a cost of production report for mixing department.

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