Terry’s Iced Tea hires us to help assign and report costs. The company has two departments: mixing and bottling. To aid our analysis, the Tableau Dashboard is provided with information for the mixing department. The company uses the weighted average method.
1. Compute the total equivalent units of production for direct materials and conversion.
2. Compute the costs per equivalent unit of production.
3. Assign costs to the mixing department’s output (units transferred to bottling and ending work in process inventory).