1 answer

Cooperative San José of southern Sonora state in Mexico makes a unique syrup using cane sugar...

Question:

Cooperative San José of southern Sonora state in Mexico makes a unique syrup using cane sugar and local herbs. The syrup is s

Cooperative San José of southern Sonora state in Mexico makes a unique syrup using cane sugar and local herbs. The syrup is sold in small bottles and is prized as a flavoring for drinks and for use in desserts. The bottles are sold for $12 each. The first stage in the production process is carried out in the Mixing Department, which removes foreign matter from the raw materials and mixes them in the proper proportions in large vats. The company uses the weighted average method in its process costing system. A hastily prepared report for the Mixing Department for April appears below: 30,000 200,000 230,000 Units to be accounted for: Work in process, April 1 (materials 90% complete; conversion 80% complete) Started into production Total units to be accounted for Units accounted for as follows: Transferred to next department Work in process, April 30 (materials 75% complete; conversion 60% complete) Total units accounted for 190,000 40,000 230,000 Cost Reconciliation Cost to be accounted for: Work in process, April 1 Cost added during the month Total cost to be accounted for Cost accounted for as follows: Work in process, April 30 Transferred to next department Total cost accounted for $ 98,000 827,000 $ 925,000 $ 119,400 8 05,600 $ 925,000 Management would like some additional information about Cooperative San José's operations. Required: 1. What were the Mixing Department's equivalent units of production for materials and conversion for April? 2. What were the Mixing Department's cost per equivalent unit for materials and conversion for April? The beginning inventory consisted of the following costs: materials, $67,800; and conversion cost, $30,200. The costs added during the month consisted of: materials, $579,000; and conversion cost, $248,000. 3. How many of the units transferred out of the Mixing Department in April were started and completed during that month? 4. The manager of the Mixing Department stated, "Materials prices jumped from about $2.50 per unit in March to $3 per unit in April, but due to good cost control I was able to hold our materials cost to less than $3 per unit for the month." Should this manager be rewarded for good cost control?

Answers

Solution 1:

Production Cost report - Mixing Department
Computation of Equivalent unit of Production
Particulars Physical Units Material Conversion
Units to account for:
Beginning WIP 30000
Started into Production 200000
Total units to account for 230000
Units accounted for:
Unit completed & Transferred out 190000 190000 190000
Units in ending inventory: 40000
Material (75%) 30000
Conversion (60%) 24000
Equivalent units of production 230000 220000 214000

Solution 2:

Computation of Cost per equivalent unit - Mixing department
Particulars Material Conversion Total
Opening WIP $67,800 $30,200 $98,000
Cost Added during Period $579,000 $248,000 $827,000
Total cost to be accounted for $646,800 $278,200 $925,000
Equivalent units of production 220000 214000
Cost per Equivalent unit $2.94 $1.30

Solution 3:

Units started and completed during the month = 190000 - 30000 = 160000 units

Solution 4:

No, manager should not be awarded for good cost of control, the average material cost is less than $3 per unit, because manager adopted weighted average method of process costing.

.

Similar Solved Questions

1 answer
A ​$1,000 par value bond has a current price of $884.94 and a maturity value of...
A ​$1,000 par value bond has a current price of $884.94 and a maturity value of $1,000 and matures in 6 years. If interest is paid semiannually and the bond is priced to yield 8​%, what is the​ bond's annual coupon​ rate? The​ bond's annual coupon rate is (blank...
1 answer
5. Bioremediation (will be discussed further in class on 3/22): Isopropyl propionate (IPP CoH1202) has been...
5. Bioremediation (will be discussed further in class on 3/22): Isopropyl propionate (IPP CoH1202) has been considered as an electron donor source to support the biodegradation of tetrachloroethene (PCE) or trichloroethene (TCE) to ethene. IPP has been shown to undergo hydrolysis (transformation due...
1 answer
As an industrial psychologist, you have been hired by a large hospital to automate the admitting...
As an industrial psychologist, you have been hired by a large hospital to automate the admitting procedure and reduce the admission time. Previously, population data indicates that it took an average of 37 minutes to admit each patient, with a population standard deviation of 9 minutes. You create a...
3 answers
An 80.0kg spacewalking astronaut pushes off a 645kg satellite, exerting a 120N force for the 0.590s...
An 80.0kg spacewalking astronaut pushes off a 645kg satellite, exerting a 120N force for the 0.590s it takes him to straighten his arms. How far apart are the astronaut and the satellite after 1.50min ?...
1 answer
DigiCom repairs electronic devices. Using the format provided below. show the effects of the activities listed...
DigiCom repairs electronic devices. Using the format provided below. show the effects of the activities listed in (a) through 0). (Enter all amounts as positive values) a. Stacey Crowe, owner of DigiCom, invested cash of $21,000 into her business. b. DigiCom paid $3,200 to cover rent for the current...
1 answer
Available ur tank V=0.2 m reversible, adiabatic compressor R22 Thank = -20°C Vii = 0.05 m...
available ur tank V=0.2 m reversible, adiabatic compressor R22 Thank = -20°C Vii = 0.05 m I Wc Tomo = -10°C m=0.1 kg/s for t = 10 min Pcout = 18 bar Problem sketch A tank with volume V = 0.2 m2 contains refrigerant R22 at Ttank = -20°C, as shown in the problem sketch. Initially the tank ...
1 answer
Language use : c++ Correct Tower application to move the disks from the pin on the...
language use : c++ Correct Tower application to move the disks from the pin on the left to the pin on the right. Hint: draw the motion of th disks for a small set "say three" and walk your way through the recursion. #include <iostream> using namespace std; void towers(int,char,char,...
1 answer
The professor of an introductory statistics course has found something interesting: there may be a relationship...
The professor of an introductory statistics course has found something interesting: there may be a relationship between scores on his first midterm and the number of years the test-takers have spent at the university. For the 63 students taking the course, the professor found that the least squares ...
1 answer
S E S ! AaBDCDK AaBbcc AaBbci AaBbcc A 1 Normal No Spac... Heading 1 Heading...
S E S ! AaBDCDK AaBbcc AaBbci AaBbcc A 1 Normal No Spac... Heading 1 Heading 2 T Paragraph Styles 1. The diagram to the right initially represents market demand and supply for a competitive industry The supply curve represents the horizontal sum of the individual firms' marginal cost curves. Ilg...
1 answer
QUESTION 1 Please help me with my homework assignment. This is question 1 and 2. Thank...
QUESTION 1 Please help me with my homework assignment. This is question 1 and 2. Thank you and have a good day. 2020 An asset has an initial cost of $65,000 and an estimated salvage value of $5,000 after 12 years. The amount of accumulated depreciation after 5 years if straight-line depreciation is ...
1 answer
Shamrock Industries uses process costing. All of the company's manufacturing activities take place in a single...
Shamrock Industries uses process costing. All of the company's manufacturing activities take place in a single processing departm The following information was available for the month of June. Direct materials Direct labor Manufacturing overhead applied Total costs to account for in June 81,000 ...
1 answer
Read the studente bow which was to be Choose the correct answer below OA Mark. This...
Read the studente bow which was to be Choose the correct answer below OA Mark. This term Read and wring Price to me. One way to do the record Use my class notes and reading to create or each OB. Sharon. This term I will: Read every text mignment before. The classes and review them. U memories to hab...
1 answer
Berry Corporation has 50,000 shares of P10 par ordinary shares authorized. The following transactions took place...
Berry Corporation has 50,000 shares of P10 par ordinary shares authorized. The following transactions took place during 2020, the first year of the corporation’s existence: Sold 5,000 ordinary shares for P18 per share. Issued 5,000 ordinary shares in exchange for an equipment valued at P100,00...
1 answer
Could someone please help me with these problems
could someone please help me with these problems.I've already posted them once,but got no response.Thank you in advance for the help. rationalize the denominator and simplify. 1.sqrt 3/2 2.4/sqrt 6 3.3+ sqrt2/sqrt b 4.4 sqrt x/+ 2 sqrt y...
1 answer
Viana Manufacturing uses a normal cost system and had the following data available for 2018 Direct...
viana Manufacturing uses a normal cost system and had the following data available for 2018 Direct materials purchased on account $ 75,000 Direct materials requisitioned 45,000 Direct labor cost incurred 70,000 Factory overhead incurred Cost of goods completed Cost of goods sold 90,000 150,000 130,0...
1 answer
Me Name moy Bese Physics Quiz Linear Momentum (Show all your work, labels, units, etc. just...
me Name moy Bese Physics Quiz Linear Momentum (Show all your work, labels, units, etc. just as we have done in class) 035m A super ball of a mass of 0.335Kg is dropped from the rooftop of a two-story apartment building at a height of 27 feet. The super ball bounces to a return height of 4.675 meters...
1 answer
A line segment goes from #(2 ,6 )# to #(1 ,3 )#. The line segment is dilated about #(2 ,0 )# by a factor of #2#. Then the line segment is reflected across the lines #x = 2# and #y=5#, in that order. How far are the new endpoints from the origin?
A line segment goes from #(2 ,6 )# to #(1 ,3 )#. The line segment is dilated about #(2 ,0 )# by a factor of #2#. Then the line segment is reflected across the lines #x = 2# and #y=5#, in that order. How far are the new endpoints from the origin?...
1 answer
The following information comes from the accounting records for Chelsea, Inc., for May: Direct materials inventory,...
The following information comes from the accounting records for Chelsea, Inc., for May: Direct materials inventory, May 1 $ 18,200 Direct materials inventory, May 31 14,900 Work-in-process inventory, May 1 8,900 Work-in-process inventory, May 31 6,900 Finished goods inventory, May 1 54,500 Finished ...
1 answer
D Question 5 10 pts The graph shows the x velocity vs time of an object...
D Question 5 10 pts The graph shows the x velocity vs time of an object undergoing one dimensional motion. The object was at x = 25 cm at t = 0, what is the position of the object as a function of time? 20 O 10 0 2 4 68 10 time (sec) O xit-20 cm-(3 cm/s) t O xit)-25 cm-(3 cm /s2) t2 o xt)-25 cm + (2...