Madison Meats Inc. produces sausages in three production departments-Mixing, Casing andCuring,and Packaging. In the Mixing Department, meats are prepared and ground and then mixed with spices.The spiced meat mixture is then transferred to the Casing and Curing Department, where the mixture isforce-fed into casings and then hung and cured in climate-controlled smoking chambers. In the PackagingDepartment, the cured sausages are sorted, packed, and labeled. The company uses the weighted-averagemethod in its process costing system. Data for April for the Casing and Curing Department follow:
Units Mixing Materials Conversion
Work in process inventory, April 1 5 100% 60% 50%
Work in process inventory, April 30 5 100% 20% 10%
Mixing Materials Conversion
Work in process inventory, April 1 $12,270 $100 $1,435
Cost added during April $138,530 $11,185 $74,190
Mixing cost represents the costs of the spiced meat mixture transferred in from the Mixing Department.The spiced meat mixture is processed in the Casing and Curing Department in batches; each unit in theabove table is a batch, and one batch of spiced meat mixture produces a set amount of sausages that arepassed on to the Packaging Department. During April, 60 batches (i.e., units) were completed and transferredto the Packaging Department.
1. Determine the equivalent units for April for mixing, materials, and conversion. Do not round off yourcomputations.
2. Compute the costs per equivalent unit for April for mixing, materials, and conversion.
3. Determine the total cost of ending work in process inventory and the total cost of units transferred tothe Packaging Department in April.
4. Prepare a cost reconciliation report for the Casing and Curing Department for April.