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Delightful Yogurt Company produces yogurt in two departments-Mixing and Finishing. In Mixing, all ingredients except fruit are added at the start of production. In Finishing, fruit is added and then the mixture is placed into containers. Adding the fruit to the basic yogurt mixture increases the volume transferred in by the number of gallons of fruit added. Any spoilage that occurs is in the Finishing Department. Spoilage is detected just before the yogurt is placed into containers or at the 98 percent completion point. All spoilage is abnormal.
Finishing DepartmentBWIP (100% fruit, 0% container, 30% CC) 5,000 gallonsGallons transferred in 5,500Gallons of fruit added 1,200EWIP (100% fruit, 0% container, 60% CC) 1,700Gallons transferred out 9,000Abnormal spoilage 1,000
required:
Problem 1: prepare cost of production report for October 2015. The company uses weighted average.
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