Operation Costing Brian Canning Co., which sells canned corn, uses an operation costing system. Cans 1 answer below »
Operation Costing Brian Canning Co., which sells canned corn, uses an operation costing system. Cans of corn are classified as either sweet or regular, depending on the type of corn used. Both types of corn go through the separating and cleaning operations, but only regular corn goes through the creaming operation. During January, two batches of corn were canned from start to finish. Batch X consisted of 800 pounds of sweet corn and batch Y consisted of 700 pounds of regular corn. The com- pany had no beginning or ending work-in-process inventory. The following cost information is for the month of January:
Raw sweet corn Batch
X Cost
$5,200 Batch Size
800 LB
Raw regular corn
Y
2,450*
700 LB
Separating department costs
1,500
Cleaning department costs
900
Creaming department costs
210
*Includes $300 for cream.
Required
Compute the unit cost for sweet corn and regular corn.
Record appropriate journal entries.