Figure 5-6
Kramer, 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 April follows: Work in progress, April 1:
$\begin{array}{lr}
\text { Units }(35 \% \text { complete) } & 5,000 \
\text { Direct materials } & £ 24,000 \
\text { Direct labour } & £ 30,000 \
\text { Overhead } & £ 10,000
\end{array}$ During April, 25,000 units were completed and transferred to the molding department. The following costs were incurred by the mixing department during April: $\begin{array}{lr}
\text { Direct materials } & £ 90,000 \
\text { Direct labour } & 120,000 \
\text { Overhead } & 30,000
\end{array}$ Two thousand five hundred (2,500) units that were 80 per cent complete remained in mixing at April 30.
-Refer to Figure 5-6. Kramer's total costs to account for would be

Question

Quizplus · Accepted Answer

The total costs to account for in the mixing department include the costs at the beginning of the period plus the costs added during the period. Beginning costs are £24,000 (direct materials) + £30,000 (direct labour) + £10,000 (overhead) = £64,000. Costs incurred during April are £90,000 (direct materials) + £120,000 (direct labour) + £30,000 (overhead) = £240,000. Therefore, the total costs to account for are £64,000 + £240,000 = £304,000.

Figure 5-6 Kramer, Inc During April, 25,000 Units Were Completed and Transferred to the Two

Figure 5-6
Kramer, Inc During April, 25,000 Units Were Completed and Transferred to the Two