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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 ompany Cost of Production Report-Mixing Department For the Month Ended March 31 Unit Information Units charged to production: Inventory in process, March 1 Received from materials storeroom Total units accounted for by the Mixing Department Units to be assigned costs: 2,000 38,000 40,000 Inventory in process, March 1 (35% 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: Total costs for March in Mixing Department Total equivalent units Cost per equivalent unit Costs assigned to production: Cost Information Inventory in process, March 1 I Units 2,000 35,000 37,000 3,000 40,000 Materials Conversion 35,000 Direct Materials Conversion $2,200 000,0 Direct Materials Conversion $40,660 $37,050 $525 35,000 Total $2,725 Total costs accounted for by the Mi Cost allocated to completed and partially completed units: Inventory in process, March 1-balance) To complete Inventory in process, March 1 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 37,450 Direct Materials in inventory in process, March 1 Conversion costs in inventory in process, March 1 3,210 1,235 $ 33,250 2,565 I 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. Cost Analysis for February - Mixing Department Amount $2,725 1,235 $3,960 70,700 Equivalent Units Cost per Unit Cost per equivalent Unit: Total costs for March in Mixing Department Total equivalent units Cost per equivalent unit Costs assigned to production: Inventory in process, March 1 Costs incurred in March Total costs accounted for by the Mixing Department Cost allocated to completed and partially completed units: Inventory in process, March 1-balance To complete inventory in process, March 1 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 Conversion $2,200 $525 37,450 Direct Materials Conversion $40,660 $37,050 3,210 1,235 33,250 2,565 Total $2,725 77,710 $80,435 $2,725 1,235 $3,960 70,700 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. Cost Analysis for February - Mixing Department Amount Direct Materials in inventory in process, March 1 Conversion costs in inventory in process, March 1 Costs for March: Direct Materials Costs for March: Conversion Equivalent Units Total cost per unit Total cost per unit 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 Amount Equivalent Units 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? Higher For which component was the cost per unit for March higher than in February? Conversion costs What is most probably your recommendation to Jonathan Groat given your computations? Investigate a detailed breakdown of conversion costs to determine the source of the higher per-unit cost. 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. Mar. 31 Factory Overhead-Mixing Factory Overhead-Mixing