Problem:
Honey Butter, Inc. Manufactures a product that goes through two departments prior to completion-the Mixing Department followed by the Packaging Department. The following information is available about work in the first department. The Mixing Department, during June.
Percent Completed
Units Materials Conversions
Work in Process, beginning 70,000 70% 40%
Started into production 460,000
Completed and Transferred out 450,000
Work in Process, ending 80,000 75% 25%
Materials Conversions
Work in Process, beginning 36550 13500
Cost added during June 391850 287300
Question 1) Determine the equivalent units for June for the Mixing Department
Question 2) Compute the costs per equivalent unit for June for the Mixing Depatment
Question 3) Determine the toal cost of ending work in process inventory and the total cost of units transferred to the packing Department.
Question 4) Prepare a cost reconciliation report for the Mixing Department for June.