| Process Costing |
| Five-step process: Materials added at different points |
| Grammer Chicken produces canned chicken a la king. The chicken a la king passes through three departments: (1) Mixing, (2) Retort (sterilization), and (3) Packing. In the Mixing Department, chicken and cream are added at the beginning of the process, the mixture is partly cooked, and chopped green peppers and mushrooms are added at the end of the process. Conversion costs are incurred evenly throughout the mixing process. |
| November data from the Mixing Department are as follows: |
| | | Gallons | | | Costs |
| | | Beginning work in process inventory | 0 | gallons | Beginning work in process inventory | $0 |
| | | Started production | 14,300 | gallons | Costs added during November: |
| | | | | | Chicken | 21,740 |
| | | Completed and transferred out to Retort in November | 13,600 | gallons | Cream | 4,000 |
| | | Ending work in process inventory | | | Green peppers and mushrooms | 5,440 |
| | | (60% of the way through the | | | Direct labor | 11,200 |
| | | mixing process) | 700 | gallons | Manufacturing overhead | 9,830 |
| | | | | | Total costs | $52,210 |
| Use the blue shaded areas on the ENTERANSWERS tab for inputs. |
| Always use cell references and formulas where appropriate to receive full credit. For amounts with a zero balance, be sure to enter the correct formula (if applicable) or "=0" in the appropriate cell. If you copy/paste from the Instructions tab you will be marked wrong. |
| Requirements |
| 1 | Summarize the flow of physical units and compute the equivalent units. (Hint: Each direct material added at a different point in the production process requires its own equivalent-unit computation.) |
| | i. | Check your spelling carefully and do not abbreviate. |
| | ii. | Follow the format of the exhibit that shows the flow of physical units and output in terms of equivalent units. |
| | iii. | Complete all input areas. Be sure to include any zero balances in the report. |
| 2 | Compute the cost per equivalent unit for each cost category. |
| | i. | Check your spelling carefully and do not abbreviate. |
| | ii. | Follow the format of the exhibits that show how to summarize total costs to account for and to compute the cost per equivalent unit. |
| | iii. | Complete all input areas. Be sure to include any zero balances in the report. |
| 3 | Compute the total costs of the units (gallons):
|
| | a. | Completed and transferred out to the Retort Department |
| | b. | In the Mixing Department's ending work in process inventory |
| | i. | Check your spelling carefully and do not abbreviate. |
| | ii. | Follow the format of the exhibit that assigns total costs to units completed and to units in ending work in process. |
| | iii. | Complete all input areas. Be sure to include any zero balances in the report. |
| Saving & Submitting Solution |
| 1 | Save file to desktop. |
| | a. | Create folder on desktop, and label COMPLETED EXCEL PROJECTS |
| 2 | Upload and submit your file to be graded. |
| | a. | Navigate back to the activity window - screen where you downloaded the initial spreadsheet |
| | b. | Click Choose button under step 3; locate the file you just saved and click Open |
| | c. | Click Upload button under step 3 |
| | d. | Click Submit button under step 4 |
| Viewing Results |
| 1 | Click on Results tab in MyAccountingLab |
| 2 | Click on the Assignment you were working on |
| 3 | Click on Project link; this will bring up your Score Summary |
| 4 | Within Score Summary window, click on Download (upper right) to download the spreadsheet with feedback |
Selina707
P5_59A_start.xlsx
