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## Analyzing process cost elements across product types Mystic Bottling Company bottles popular beverages in the Bottling Department. The beverages are produced by blending concentrate with water and sugar. The concentrate is purchased from a concentrate producer. The concentrate producer sets higher prices for the more popular concentrate flavors. A simplified Bottling Department cost of production report separating the cost of bottling the four flavors follows:      Orange    Cola    Lemon-Lime    Root Beer   Concentrate \$4,625   \$129,000   \$105,000   \$7,600   Water 1,250   30,000   25,000   2,000   Sugar 3,000   72,000   60,000   4,800   Bottles 5,500   132,000   110,000   8,800   Flavor changeover 3,000   4,800   4,000   10,000   Conversion cost 1,750   24,000   20,000   2,800   Total cost transferred to finished goods \$19,125   \$391,800   \$324,000   \$36,000   Number of cases 2,500   60,000   50,000   4,000 Beginning and ending work in process inventories are negligible, so they are omitted from the cost of production report. The flavor changeover cost represents the cost of cleaning the bottling machines between production runs of different flavors. A production run of a new flavor is produced after a flavor changeover from the previous flavor. Higher-demand flavors are produced in larger production runs, while smaller-demand flavors are produced in smaller production runs. Determine the cost per case for each of the four flavors. Round your answers to two decimal places. Orange \$fill in the blank 1 per case Cola \$fill in the blank 2 per case Lemon-Lime \$fill in the blank 3 per case Root Beer \$fill in the blank 4 per case Complete the following paragraph regarding the comparative cost information and results from above. The cost per case of   is significantly above the cost per case of the other three flavors. Based on an analysis of the individual cost elements that determine the total cost divided by the number of cases, it appears that   are either bottled in short production runs, meaning more frequent changeovers, or that each changeover is very difficult and expensive. The conversion cost per case is larger because the bottling line rate appears slower for   compared to  .

Analyzing process cost elements across product types

Mystic Bottling Company bottles popular beverages in the Bottling Department. The beverages are produced by blending concentrate with water and sugar. The concentrate is purchased from a concentrate producer. The concentrate producer sets higher prices for the more popular concentrate flavors. A simplified Bottling Department cost of production report separating the cost of bottling the four flavors follows:

 Orange Cola Lemon-Lime Root Beer Concentrate \$4,625 \$129,000 \$105,000 \$7,600 Water 1,250 30,000 25,000 2,000 Sugar 3,000 72,000 60,000 4,800 Bottles 5,500 132,000 110,000 8,800 Flavor changeover 3,000 4,800 4,000 10,000 Conversion cost 1,750 24,000 20,000 2,800 Total cost transferred to finished goods \$19,125 \$391,800 \$324,000 \$36,000 Number of cases 2,500 60,000 50,000 4,000

Beginning and ending work in process inventories are negligible, so they are omitted from the cost of production report. The flavor changeover cost represents the cost of cleaning the bottling machines between production runs of different flavors. A production run of a new flavor is produced after a flavor changeover from the previous flavor. Higher-demand flavors are produced in larger production runs, while smaller-demand flavors are produced in smaller production runs.

Determine the cost per case for each of the four flavors. Round your answers to two decimal places.

 Orange \$fill in the blank 1 per case Cola \$fill in the blank 2 per case Lemon-Lime \$fill in the blank 3 per case Root Beer \$fill in the blank 4 per case

Complete the following paragraph regarding the comparative cost information and results from above.

The cost per case of   is significantly above the cost per case of the other three flavors. Based on an analysis of the individual cost elements that determine the total cost divided by the number of cases, it appears that   are either bottled in short production runs, meaning more frequent changeovers, or that each changeover is very difficult and expensive. The conversion cost per case is larger because the bottling line rate appears slower for   compared to  .

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