Natures Bounty Bakery needs to determine the cost of two work orders for the month of June.

Nature’s Bounty Bakery needs to determine the cost of two work orders for the month of June. Work Order 215 is for 1,500 packages of dinner rolls and Work Order 216 is for 1,100 loaves of multigrain bread. Dinner rolls are mixed and cut into individual rolls before being baked and then packaged. Multigrain loaves are mixed and shaped before being baked, sliced, and packaged. The following information applies to Work Order 215 and Work Order 216:

Selected budget information for June follows:

Budgeted conversion costs for each operation for June follow:
Mixing ............$ 9,375
Shaping............ 1,760
Cutting ............810
Baking ............7,500
Slicing ............640
Packaging............ 11,250

Required
1. Use budgeted number of packages as the denominator to calculate the budgeted conversion- cost rates for each operation.
2. Use the information in requirement 1 to calculate the budgeted cost of goods manufactured for the two June work orders.
3. Calculate the cost per package of dinner rolls and multigrain loaves for Work Order 215 and 216.

Transcribed Image Text:

Work Order 215 Work Order 216 Quantity (packages) Operations 1. Mix 2. Shape loaves 3. Cut rolls 4. Bake 5. Slice loaves 6. Package 1,500 1,100 Use Do not use Use Use Do not use Use Use Use Do not use Use Use Use Dinner Rolls 4,500 $2,250 Multigrain Loaves 8,000 $4,800 Total 12,500 7,050 Packages Direct material costs