Moccasin Company produces 15,000 bars of chocolates and has the following cost data for the month of January: $$\begin{array} { l r r }
& \text { Blending } & \text { Molding } \
& \text { Process } & \text { Process } \
\text { Direct materials } & \$ 12,000 & \$ 3,000 \
\text { Direct labor } & 9,000 & 6,000 \
\text { Applied overhead } & 3,500 & 2,500
\end{array}$$
Calculate the costs transferred out of the Molding Department for the month of January. Assume no work-in-process inventories.

Question

Moccasin Company produces 15,000 bars of chocolates and has the following cost data for the month of January: $$\begin{array} { l r r } 
& \text { Blending } & \text { Molding } \
& \text { Process } & \text { Process } \
\text { Direct materials } & \$ 12,000 & \$ 3,000 \
\text { Direct labor } & 9,000 & 6,000 \
\text { Applied overhead } & 3,500 & 2,500
\end{array}$$
Calculate the costs transferred out of the Molding Department for the month of January. Assume no work-in-process inventories.

Quizplus · Accepted Answer

The costs transferred out of the Molding Department include all costs incurred in both the Blending and Molding processes. Total costs are: Direct materials ($12,000 + $3,000) + Direct labor ($9,000 + $6,000) + Applied overhead ($3,500 + $2,500) = $36,000.

Moccasin Company Produces 15,000 Bars of Chocolates and Has the Following