WoW Chemical Company uses a process costing system with two departments: (a) a Mixing Department, and (b) a Packing Department. During May, its first month of operations, the company generated $180,000 in revenue by manufacturing and selling 800 cases of chemicals. Related manufactured costs are as follows:

-Refer to the above data. The unit cost of a case processed in the Mixing Department in May was:

Question

WoW Chemical Company uses a process costing system with two departments: (a) a Mixing Department, and (b) a Packing Department. During May, its first month of operations, the company generated $180,000 in revenue by manufacturing and selling 800 cases of chemicals. Related manufactured costs are as follows:
 
-Refer to the above data. The unit cost of a case processed in the Mixing Department in May was:

Quizplus · Accepted Answer

The unit cost of a case processed in the Mixing Department in May was $57.50. This is calculated by dividing the total cost of production for the month ($1,150,000) by the number of cases processed (20,000).

WoW Chemical Company Uses a Process Costing System with Two