Smith Paper, Co., produces the paper used by wallpaper manufacturers. Smith€™s four-stage process includes mixing, cooking, rolling, and cutting. During September, the Mixing Department started and completed mixing for 4,405 rolls of paper. The department started but did not finish the mixing for an additional 600 rolls, which were 20% complete with respect to both direct materials and conversion work at the end of September. Direct materials and conversion costs are incurred evenly throughout the mixing process. The Mixing Department incurred the following costs during September:

Requirements
1. Compute the number of equivalent units and the cost per equivalent unit in the Mixing Department for September.
2. Show that the sum of (a) cost of goods transferred out of the Mixing Department and (b) ending Work in process inventory€”Mixing equals the total cost accumulated in the department during September.
3. Journalize all transactions affecting the company€™s mixing process during September, including those alreadyposted.

Transcribed Image Text:

Work in process inventory-Mixing Bal, Sep 1 Direct materials Direct labor Manufacturing overhead 5,430 550 5,785