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Exercise – Cannery Row
Cannery Row produces condensed tomato soup using two processes: mixing and canning. The company’s accountant has produced the following process costing data for February 2015:
| Cannery Row – Process costing data for February 2015 | Mixing
Dept |
Canning
Dept |
| Units (i.e. gallons of product) | ||
| Beginning Work in progress (WIP) (in gallons) | 1,000 | 2,000 |
| Units started in production this month (in gallons) | 23,000 | See mxing |
| Units/gallons completed & transferred out during the month | 20,000 | 13,500 |
| Completion percentage at end of month: | ||
| Ending WIP, direct materials added (%) | 50% | 10% |
| Ending WIP, conversion work performed (%) | 25% | 75% |
| Costs | $ | $ |
| Beginning WIP, costs added in prior periods: | ||
| Transferred in costs | N/A | 33,000 |
| Direct materials | 12,000 | 9,250 |
| Conversion cost: direct labor | 10,000 | 12,125 |
| Conversion cost: overhead applied | 16,000 | 40,000 |
| Costs added to process in February 2015: | ||
| Direct materials | 98,000 | 62,500 |
| Conversion cost: direct labor | 25,000 | 20,000 |
| Conversion cost: overhead applied | 75,000 | 67,000 |
Due to a machine breakdown in the Canning Department, the company faced a backlog of work in this department during February 2015.
Required:
Using the data provided above and the template on the next page, prepare the process costing report for the Mixing Department for February 2015.
Using the data above and your answer from part 1), prepare the process costing report for the Canning Department for February 2015. Use the 2nd template provided.
| Cannery Row: Mixing Dept Process Costing Report for February 2015 | |||||||
| Percentage completed | Equivalent units | ||||||
| Total | Direct materials | Conversion | Direct materials | Conversion | |||
| Units | |||||||
| Beginning WIP inventory | |||||||
| Units started | |||||||
| Units available | |||||||
| Units completed | ? | ? | |||||
| Ending WIP inventory | ? | ? | |||||
| Units accounted for | |||||||
| Total $ | |||||||
| Costs | |||||||
| Beginning WIP inventory | |||||||
| Costs added this month | |||||||
| Total costs in process | |||||||
| Cost per equivalent unit ($) | $ per EU | $ per EU | |||||
| Cost assignment | |||||||
| Units completed | |||||||
| Ending WIP inventory | |||||||
| Total costs | |||||||
| Cannery Row: Canning Dept Process Costing Report for February 2015 | |||||||||
| Percentage completed | Equivalent units | ||||||||
| Total | Transferred in costs | Direct materials | Conversion | Transferred in costs | Direct materials | Conversion | |||
| Units | |||||||||
| Beginning WIP inventory | |||||||||
| Units started | |||||||||
| Units available | |||||||||
| Units completed | ? | ? | ? | ||||||
| Ending WIP inventory | ? | ? | ? | ||||||
| Units accounted for | |||||||||
| Total $ | |||||||||
| Costs | |||||||||
| Beginning WIP inventory | |||||||||
| Costs added this month | |||||||||
| Total costs in process | |||||||||
| Cost per EQ unit ($) | $ | $ | $ | ||||||
| Cost assignment | |||||||||
| Units completed | |||||||||
| Ending WIP inventory | |||||||||
| Total costs | |||||||||
Expert Answer
