Value World produces canned chicken a la king. The chicken a la king passes through three departments: (1) Mixing, (2) Retort (sterilization), and (3) Packing. In the Mixing Department, chicken and cream are added at the beginning of the process, the mixture is partly cooked, then chopped green peppers and mushrooms are added at the end of the process. Conversion costs are added evenly throughout the mixing process. November data from the Mixing Department are as follows:

Requirements
1. Draw a time line for the Mixing Department.
2. Use the time line to help you summarize the flow of physical units and compute the equivalent units.
3. Compute the cost per equivalent unit for each cost category.
4. Compute the total costs of the units (gallons):
a. Completed and transferred out to the Retort Department
b. In the Mixing Department's ending work in process inventory

Transcribed Image Text:

Gallons Costs Beginning work in process inventory Started production Completed and transferred out to 0 gallons Beginning work in process inventory 14,400 gallons Costs added during November: 13,400 gallons Cream 1,000 gallons Diect labor Chicken 14,320 4,400 6,700 11,400 3,020 $39,840 Retort in November Ending work in process inventory (65% of the Green peppers and mushrooms way through the mixing process) Manufacturing overhead Total costs