Royce 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: GALLONS
Beginning work in process inventory 0 gallons
Started production 14,200 gallons
Completed and transferred out to Retort in November 13,200 gallons
Ending work in process inventory (60% of the way through the mixing process)
1,000 gallons
COST
Beginning work in process inventory $0
Cost added during November:
Chicken $15,780
Cream $4,100
Green peppers and mushrooms $7,920
Direct Labor $11,300
Manufacturing overhead $3,156
Total costs $42,256
Requirements:
1. Compute the cost per equivalent unit for each cost category.
2. 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.