Question

Charleston Biscuit Company (CBC) makes cheese crackers that it packs in decorative one- pound tins and sells to specialty stores throughout the southeast United States. The crackers pass through three departments: the mixing department, the baking department, and the packaging department. This problem focuses on the mixing department. The process- costing system at CBC has a single direct- cost category (direct materials) and a single indirect- cost category (conversion costs). Direct materials are added when the mixing department process is 10% complete. Conversion costs are added evenly during the mixing department’s process.
CBC uses the weighted- average method of process costing. Consider the following data for the mixing department in September 2012:


.:.
Required
1. Summarize total mixing department costs for September 2012, and assign total costs to units completed (and transferred out) and to units in ending work in process.
2. What issues should the manager focus on when reviewing the equivalent units calculation?



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  • CreatedJanuary 15, 2015
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