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

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

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

Workinprocessinventory:

Beginning inventory (40%complete in prior period) 5,000 liters

Ending Inventory (60% complete) 6,000 liters

Unit productiondata:

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.

REQUIRED

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.


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