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Page 226 PROBLEM 6-16 Interpreting a Report-Weighted-Avernge Method ( 102, 103, 1041 Cooperative San Jose of soutliera Sonora state in Mexico makes a unique syrup using enne sugar and local herbs. The syrup is sold in small bottles and is prized as a flavouring for drinks and for use in desserts. The bottles are sold to customers in Canada for $12 each. The first stage in the production process is carried out in the Mixing Department, which removes foreign matter from the raw materials and mixes them in the proper proportions in large vots. The company uses the weighted average method in its process costing system. A hastily prepared report for the Mixing Department for April appears below: 30,000 200,000 230,000 190,000 40,000 230,000 Units to be accounted for Work in process, Aprili (materials 90% complete conversion 80% complete) Started into production Total units to be accounted for Units accounted for as follows: Transferred to next department Work in process, April 30 (materials 75% complete conversion 60% complete) Total units accounted for Cost Reconciliation Cost to be accounted for Work in process, April Cost added during the month Total cost to be accounted for Cost accounted for as follows: Work in process, April 30 Transferred to next department Total costs accounted for $ 98,000 827,000 S925.000 $119.400 505.000 $925.000 Management would like some additional information about Cooperative San Jose's operations. Required: 1. What were the equivalent units for the month? 2. What were the costs per equivalent unit for the month? The beginning inventory consisted of the following costs: materials. $67,800, and conversion cost, $30,200. The costs added during the month consisted of materials, $579,000, and conversion cost, $248,000. 3. How many of the units transferred to the next department were started and completed during the month? 4. The manager of the Mixing Department stated, "Materials prices jumped from about $2.50 per unit in March to $3 per unit in April, but due to good cost control I was able to hold our materials cost to less than $3 per unit for the month." Should this manager be rewarded for good cost control? Explain

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