Lisa's Sugar Company manufactures soda by a series of four processes. Crushing, Heating and Clarification, Crystallization and then Packaging into a bag of sugar.
The balance of the WIP Crystallization Dept units, complete as follows at January :
Direct Materials $
Conversion $
The following costs were charged to WIPCrystallization Department during August:
Direct Materials transferred from Heating and Clarification Dept.: units
At $ a unit
Direct Labour
Factory Overhead
During January, units of sugar were completed. Work In ProcessCrystallization Dept on January was units, completed.
TO DO:
Prepare a Cost of Production report for the Crystallization dept. for January.
Journalize the entries for costs transferred from Heating and Clarification Dept. and the costs transferred from Crystallization to packaging.
Determine increase or decrease in the cost per equivalent unit from December to January for direct materials and conversion costs.
