# Mixing Department Process Costing (November) This solution uses the **weighted-average method** for process costing. --- ## 1. Mixing Department Time Line | Stage | Gallons | |-----------------------------------------|-----------------| | Beginning WIP Inventory (Nov 1) | | | Started Production | 14,300 | | **Total to Account For** | 14,300 | | Completed & Transferred Out | 13,100 | | Ending WIP Inventory (Nov 30, 65% done) | 1,200 | | **Total Accounted For** | 14,300 | --- ## 2. Flow of Physical Units & Equivalent Units Calculation ### a) Flow of Physical Units - **Beginning Inventory:** - **Started:** 14,300 - **Transferred Out:** 13,100 - **Ending WIP:** 1,200 (65% complete) - **Accounted For:** 13,100 + 1,200 = 14,300 ### b) Equivalent Units #### i. Chicken and Cream (added at beginning) - All units transferred out: **13,100 × 100% = 13,100** - Ending WIP: **1,200 × 100% = 1,200** - **Total Equivalent Units:** 13,100 + 1,200 = **14,300** #### ii. Green Peppers & Mushrooms (added at end) - Only units completed get these ingredients: - Transferred out: **13,100 × 100% = 13,100** - Ending WIP: **1,200 × % = ** - **Total Equivalent Units:** **13,100** #### iii. Conversion Costs (incurred evenly) - Transferred out: **13,100 × 100% = 13,100** - Ending WIP: **1,200 × 65% = 780** - **Total Equivalent Units:** 13,100 + 780 = **13,880** | Cost Component | Equivalent Units | |----------------------- |-----------------| | Chicken & Cream | 14,300 | | Green Peppers/Mushrooms| 13,100 | | Conversion Costs | 13,880 | --- ## 3. Cost per Equivalent Unit Calculation ### a) Total Costs to Account For - **Chicken:** $13,060 - **Cream:** $4,100 - **Green Peppers & Mushrooms:** $5,240 - **Direct Labor:** $11,400 - **Manufacturing Overhead:** $3,868 - **Total Costs:** $37,668 ### b) Cost Pooling - **Conversion Costs** = Direct Labor + Manufacturing Overhead = $11,400 + $3,868 = **$15,268** ### c) Cost per Equivalent Unit | Cost Component | Total Cost | Equivalent Units | Cost per Equivalent Unit | |------------------------- |-----------|------------------|-------------------------| | Chicken | $13,060 | 14,300 | $.9133 | | Cream | $4,100 | 14,300 | $.2867 | | Green Peppers/Mushrooms | $5,240 | 13,100 | $.400 | | Conversion Costs | $15,268 | 13,880 | $1.100 | --- ## 4. Assigning Costs: Completed & Ending WIP ### a) Costs of Units Completed & Transferred Out - **Gallons:** 13,100 | Cost Component | Cost per EU | Equivalent Units | Total Cost | |--------------------------|-------------|------------------|----------------------| | Chicken | $.9133 | 13,100 | $11,963.23 | | Cream | $.2867 | 13,100 | $3,756.77 | | Green Peppers/Mushrooms | $.400 | 13,100 | $5,240.00 | | Conversion Costs | $1.100 | 13,100 | $14,410.00 | | **Total** | | | **$35,370.00** | ### b) Costs in Ending WIP Inventory - **Gallons:** 1,200 (65% complete) | Cost Component | Cost per EU | Equivalent Units | Total Cost | |--------------------------|-------------|------------------|----------------------| | Chicken | $.9133 | 1,200 | $1,096.00 | | Cream | $.2867 | 1,200 | $344.00 | | Green Peppers/Mushrooms | $.400 | | $.00 | | Conversion Costs | $1.100 | 780 | $858.00 | | **Total** | | | **$2,298.00** | --- ## 5. Summary Table | Category | Gallons | Total Cost | |----------------------|---------|--------------| | Transferred Out | 13,100 | $35,370 | | Ending WIP | 1,200 | $2,298 | | **Total** | 14,300 | $37,668 | --- ## 6. Final Summary - **Physical units were tracked from start (14,300 gallons) to finish (13,100 transferred, 1,200 in process).** - **Equivalent units were calculated for each input based on timing of addition and percent completion.** - **Cost per equivalent unit was computed for each material and for conversion.** - **Total costs were assigned to completed units ($35,370) and to units in ending inventory ($2,298), matching total costs added ($37,668).** --- ### Visual: Mixing Department Flow Chart  *Alt text: Diagram showing flow of gallons and costs through Mixing Department, with split to transferred out and WIP.* --- ## Key Points - Use separate equivalent unit calculations for each material and conversion. - Conversion costs include both direct labor and overhead. - Only completed units receive materials added at the end of the process (green peppers/mushrooms). - Ending WIP only receives costs for the percent complete. --- If you need calculations for any other department or a different costing method, please specify.

# Step-by-Step Summary of Mixing Department Process Costing ## 1. Mixing Department Time Line The Mixing Department's timeline outlines the flow of 14,300 gallons of production, starting with 0 gallons in beginning inventory and accounting for 13,100 gallons transferred out and 1,200 gallons in ending work in process. This ensures that total gallons to account for matches the total accounted for. ## 2. Flow of Physical Units & Equivalent Units Calculation The flow of physical units shows how many gallons were started, transferred, and left in process. Equivalent units were calculated separately for chicken/cream (14,300), green peppers/mushrooms (13,100), and conversion costs (13,880) based on their addition timing and completion percentage. ## 3. Cost per Equivalent Unit Calculation Total costs for the Mixing Department were compiled, leading to a combined cost pool for conversion costs. The cost per equivalent unit was determined for each category, resulting in values of approximately $0.9133 for chicken, $0.2867 for cream, $0.400 for green peppers/mushrooms, and $1.100 for conversion costs. ## 4. Assigning Costs: Completed & Ending WIP Costs for the units completed and transferred out totaled $35,370, calculated from the respective equivalent units and cost per unit. The ending work in process inventory was valued at $2,298, reflecting costs for the 1,200 gallons that were 65% complete. ## 5. Summary Table A summary table consolidates the gallons produced and their corresponding total costs, showing 13,100 gallons transferred out at $35,370 and 1,200 gallons in ending WIP at $2,298, for a total of $37,668. This ensures clarity in the distribution of costs across the production process. ## 6. Final Summary The Mixing Department's process costing was tracked from production initiation to completion, accurately calculating equivalent units and costs. The final data confirms that total costs matched the sum of completed units and ending inventory, providing a comprehensive view of the production costs.