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Mastery Problem: Process Cost Systems Grainy Goodness Company Grainy Goodness Company manufactures granola cereal by a series of three processes, beginning materials such as oats, sweeteners, and nuts being introduced in the Mixing Department. From the Mixing Department, the materials pass through the Baking and Packaging departments, emerging as boxed granola cereal ready for shipment to retail outlets. Direct materials are added at the beginning of each process, and conversion costs are incurred evenly throughout production in each department. During March, the President and sole stockholder, Jonathan Groat, reviewed the Cost of Production Report for the Mixing Department. He is concerned that the Mixing Department may not be operating efficiently, and asks for your help. Cost of Production Jonathan has noticed that his production manager has omitted some of the data on the Cost of Production. Determine the missing information. If there is no amount or an amount is zero, enter "0". Round your per-unit computations to the nearest cent, if required. Grainy Goodness Company Cost of Production Report-Mixing Department For the Month Ended March 31 Unit Information Units charged to production: Inventory in process, March Received from materials to Total units accounted for by the Ming Dep Units to be assigned costs: Inventory in process, March 135% completed) Started and completed in March Transferred to Baking Department in March Inventory in process, March 31 (90% completed) Total units to be assigned costs Cost per equivalent unit: Inventory in process, March 1 Costs incurred in March Cost Information Total costs for Marching Department Total equivalent units Costs assigned to production: Units Total cost accounted for by the Mixing Department Cost alocated to completed and partially completed units Drventory in process, March 1-blance To complete inventory in process, March 1 Cost of completed March 1 work in process Started and completed in March 2,000 35.000 37,000 1,000 40,000 2,000 37,450 Direct Materials Conversion 35.000 $40,660 $37,250 Direct Materials Conversion Tutal $2.200 1235 $1,960 70,700 Chapter 17-Quiz Cost of completed March 1 work in process Started and completed in March transferred to Baking Department in March Inventory in process, March 31 Total costs assigned by the Mixing Department Direct Materials in inventory in process, March 1 Conversion costs in inventory in process, March 1 17,450 February Cost Analysis Determine the cost per unit of direct materials and for conversion for the month of February using the completed data on the Cost of Production. Round your per-unit computations to the nearest cent, if required. Costs for March: Direct Mater Costs for March Conversion 3,210 Cost Analysis for February - Mixing Department Amount Equivalent Units Amount 33,250 70,700 2.565 March Cost Analysis Determine the cost per unit of direct materials and for conversion for the month of March using the completed data on the Cost of Production. Round your per-unit computations to the nearest cent, if required. Cost Analysis for March-Mixing Department Equivalent Units Total cost per unit Mar 31 Total cost per unit Cost per Unit Cost per Unit Mixing Dept. Evaluation After reviewing your work on the February Cost Analysis and March Cost Analysis, assist Jonathan Groat in evaluating the Mixing Department's performance by answering the following questions: In March, was the Mixing Department's total cost per unit higher or lower than in February? For which component was the cost per unit for March higher than in February? What is most probably your recommendation to Jonathan Groat given your computations? Journal On March 31, using the data provided on the Cost of Production, Journalize the entry to move the appropriate amount of cost from the Mixing Department to the Baking Department. If an amount box does not require an entry, leave it blank. 88