Happy Giant produces canned chicken à la king. The chicken à la king passes through three departments: Mixing, Retort (sterilization), and Packing. In the Mixing Department, chicken and cream are added at the beginning of the process, the mixture is partly cooked, then chopped green peppers and mushrooms are added at the end of the process. Conversion costs are added evenly throughout the mixing process. November data from the Mixing Department are as follows:
1. Draw a time line for the Mixing Department similar to Exhibit 5-6.
2. Use the time line to help you summarize the flow of physical units and compute the equivalent units.
3. Compute the cost per equivalent unit for each cost category.
4. Compute the total costs of the units (litres):
a. Completed and transferred out to the Retort Department.
b. In the Mixing Department’s ending work in process inventory.

  • CreatedApril 30, 2015
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