Rawlings, Inc. manufactures a product that passes through two processes: mixing and molding. All manufacturing costs are added uniformly in the Mixing Department. Information for the Mixing Department for January follows: $\begin{array}{lr}
\text { Work in process, January 1: } & \
\text { Units (35\% complete) } & 7,500 \
\text { Direct materials } & \$ 36,000 \
\text { Direct labor } & \$ 45,000 \
\text { Overhead } & \$ 15,000
\end{array}$ During January, 26,750 units were completed and transferred to the Molding Department. The following costs were incurred by the Mixing Department during January: $\begin{array}{lr}
\text { Direct materials } & \$ 133,050 \
\text { Direct labor } & 180,000 \
\text { Overhead (applied) } & 45,000
\end{array}$
There were 2,500 units that were 80 percent complete remaining in Mixing at January 31. The amount of total costs to account for is
A)$454,050.
B)$396,000.
C)$360,000.
D)none of the above.

Question

Quizplus · Accepted Answer

The total costs to account for include the costs at the beginning of the period plus the costs added during the period. Beginning costs are $36,000 (Direct materials) + $45,000 (Direct labor) + $15,000 (Overhead) = $96,000. Costs added during January are $133,050 (Direct materials) + $180,000 (Direct labor) + $45,000 (Overhead) = $358,050. Therefore, the total costs to account for are $96,000 + $358,050 = $454,050.

Rawlings, Inc During January, 26,750 Units Were Completed and Transferred to the Mixing