1. Draw a time line for the Mixing Department — Tasty Chicken produces canned king passes through three departments Retort sterilization and
General StudiesGeneralWorked Solution
Tasty 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 added evenly throughout the mixing process. November data from the Mixing Department are as follows:
Requirements
1. Draw a time line for the Mixing Department.
2. Use the time line to help you summarize the flow of physical units and compute the equivalent units.
3. Compute the cost per equivalent unit for each cost category.
4. 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
SOLUTION
Req. 1
Chicken and Green
cream peppers and
added mushrooms
added
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Conversion costs added evenly throughout the process
Start 60% 100%
Complete
13,600 gallons completed and transferred out
700 gallons incomplete
(ending work in process inventory)
Req. 2
Tasty Chicken
Mixing Department
Flow of Physical Units and Computation of Equivalent Units
Flow of Physical Units
Equivalent Units
Equivalent Units
Equivalent Units
Flow of Production
Flow of Physical Units
Chicken, Cream
Green Peppers, Mushrooms
Conversion Costs
Units to account for:
Beginning work in process,
November 1
0
Started in production
14,300
Total physical units to account for
14,300
Units accounted for:
Completed and transferred out
13,600
13,600
13,600
13,600
Ending work in process,
November 30
700
700a
0a
420b
Total physical units accounted for
14,300
Total equivalent units
14,300
13,600
14,020
a
The time line shows that chicken and cream are added at the beginning of the process. Green peppers and mushrooms are not added until the end of the process. The ending inventory that is 60% of the way through the production process has passed the point where the chicken and cream are added (but not the point where the green peppers and mushrooms are added). The ending inventory is complete with respect to chicken and cream, but it has no equivalent units of green peppers and mushrooms.