We appreciate your visit to Cannery Row produces condensed tomato soup using two processes mixing and canning The company s accountant has provided the following process costing data for February. This page offers clear insights and highlights the essential aspects of the topic. Our goal is to provide a helpful and engaging learning experience. Explore the content and find the answers you need!
Answer :
Final answer:
The weighted average method is used to calculate process costing reports for the Mixing and Canning Departments in Cannery Row.
Explanation:
In the Mixing Department of Cannery Row, the weighted average method is used to calculate the process costing report. To calculate the equivalent units of production, we take into account the units completed and transferred out, as well as the units in ending work in progress (WIP) at different stages of completion. The cost per equivalent unit is determined by dividing the total cost of the process by the equivalent units of production.
In the Canning Department, a backlog of work due to a machine breakdown impacted the production in February 2019. To prepare the process costing report using the weighted average method, we calculate the equivalent units of production and the cost per equivalent unit. The total cost is then allocated to the units completed and transferred out, as well as the units in ending WIP.
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