Frito-Lay, Inc., manufactures convenience foods, including potato chips and corn chips. Production of corn chips occurs in
Question:
Frito-Lay, Inc., manufactures convenience foods, including potato chips and corn chips. Production of corn chips occurs in four departments: cleaning, mixing, cooking, drying, and packaging. Consider the drying and packaging department, where direct materials (packaging) are added at the end of the process. Conversion costs are added evenly during the process. The accounting records of a Frito-Lay plant provide the following information for corn chips in its drying and packaging department during a weekly period (week 37):
Physical Units(Cases) Transferred-In Cost Direct Materials Conversion costs
Beginning work in processª 5,000 $29,000$ 0 $ 9,060
Transferred in during week 37
from cooking department 20,000
Completed during week 37 21,000
Ending work in process, week 37ᵇ 4,000
Total costs added during week 37 $96,000 $25,200 $38,400
ªDegree of completion: transferred-in costs, 100%; direct materials, ?%; conversion costs, 80%.
ᵇDegree of completion: transferred-in costs, 100%; direct materials, ?%; conversion costs, 40%.
In which department or departments was the $29,000 incurred?
When was it incurred?
How many cases are associated with this figure?
In which department or departments was the $ 9,060 incurred?
When was it incurred?
How many units are associated with this figure?
In which department or departments was the $ 25,200 incurred?
When was it incurred?
How many units are associated with this figure?
In which department or departments was the $ 38,400 incurred?
When was it incurred?
How many units are associated with this figure?
Cost Accounting A Managerial Emphasis
ISBN: 978-0133392883
6th Canadian edition
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ