Canned fruits and vegetables are the main products made by Yummy
Food, Inc. All direct materials are added at the beginning of the Mixing
Department’s process. When the ingredients have been mixed, they go to
the Cooking Department. There the mixture is heated to 100° Celsius and
simmered for 20 minutes. When cooled, the mixture goes to the Canning
Department for final processing. Throughout the operations, direct labor
and overhead costs are incurred uniformly. No direct materials are
added in the Cooking Department. Cost data and other information for the
Mixing Department for January are as follows.
Production Cost DataDirectConversion
Mixing Department MaterialsCosts
Beginning inventory 28,560 5,230
Current period costs 450,000 181,200
Beginning inventory (40%complete in prior period) 5,000 liters
Ending Inventory (60% complete) 6,000 liters
Units started during January 90,000 liters
Units transferred out during January 89,000 liters
Assume that no spoilage or evaporation loss took place during January.
1. Using the FIFO costing method, prepare a process cost report for the Mixing Department for January.
2.ACCOUNTING CONNECTIONExplain how the analysis for the Cooking Depart men t will differ from the analysis for the mixing Department.