Problem 4-18 (Algo) Interpreting a Report-Weighted-Average Method [LO4-2, LO4-3, LO4-4]

Cooperative San Jos of southern Sonora state in Mexico makes a unique syrup using cane sugar and local herbs. The syrup is sold in small bottles and is prized as a flavoring for drinks and for use in desserts. The bottles are sold for $12 each. The first stage in the production process is carried out in the Mixing Department, which removes foreign matter from the raw materials and mixes them in the proper proportions in large vats. The company uses the weighted-average method in its process costing system.

A hastily prepared report for the Mixing Department for April appears below:

Units to be accounted for:
Work in process, April 1 (materials 90% complete; conversion 80% complete)	11,900
Started into production	38,300
Total units to be accounted for	50,200
Units accounted for as follows:
Transferred to next department	45,000
Work in process, April 30 (materials 75% complete; conversion 50% complete)	5,200
Total units accounted for	50,200

Cost Reconciliation
Cost to be accounted for:
Work in process, April 1	$ 34,748
Cost added during the month	126,667
Total cost to be accounted for	$ 161,415
Cost accounted for as follows:
Work in process, April 30	$ 11,115
Transferred to next department	150,300
Total cost accounted for	$ 161,415