ACC221 Cost Accounting
Process Costing and Cost Volume Profit Case
March 19, 2009
You are to complete this assignment in self-selected groups of 3 to 5 people.
are to turn in only one paper per group.
Multiple papers turned in for the same group may result
in point deductions. No handwritten work will be accepted.
Be sure to show
Maxwell Corporation makes a special kind of bread that is sold in grocery stores.
Corporation uses the weighted-average method in process costing.
The bread is made in two
the mixing department and the baking department.
Raw materials are added at
various points in the mixing department.
The following information is available related to the
mixing department for July:
July 1 inventory: 35,000 pounds, 90% complete materials, 80% complete conversion,
$55,000, raw materials, $9,000 direct labor and $13,000 overhead for a total cost of
July costs added to the mixing department:
Raw materials (810,000 pounds) $1,037,300,
Direct labor $157,370, Overhead $325,000.
July 31, inventory contains 70,000 pounds and is 75% complete for materials and 55%
complete for conversion costs.
Costs incurred during July in the Baking department were:
Materials used: $240,000
Direct Labor: $38,000
Beginning inventories for Maxwell were:
Raw Materials: $1,300,000