Champ Inc. manufactures a product that passes through two processes: mixing and moulding. All manufacturing costs are added uniformly in the Mixing Department. Information for the Mixing Department for October follows:

$\begin{array}{llr}
\text { Wark in pracess, Octaber 1 : } &\
\text { Units ( $ 35 \% $ complete) } &7,500\
\text { Direct materials} &\$36,000\
\text { Direct labour} &\$45,000\
\text { Overhead } &\$15,000
\end{array}$
During October,26,750 units were completed and transferred to the Moulding Department.The following costs were incurred by the Mixing Department during October:
$\begin{array}{lr}
\text { Direct materials } & \$ 133,050 \
\text { Direct labour } & 180,000 \
\text { Overhead (applied) } & 45,000
\end{array}$
-Refer to the figure.There were 2,500 units that were 80 percent complete remaining in Mixing at October 31.What is the amount of total costs to account for?

Question

Champ Inc. manufactures a product that passes through two processes: mixing and moulding. All manufacturing costs are added uniformly in the Mixing Department. Information for the Mixing Department for October follows:

$\begin{array}{llr}
\text { Wark in pracess, Octaber 1 : } &\
\text { Units ( $ 35 \% $ complete) } &7,500\
  \text {  Direct materials} &\$36,000\
 \text {  Direct labour} &\$45,000\
 \text { Overhead } &\$15,000
\end{array}$
 During October,26,750 units were completed and transferred to the Moulding Department.The following costs were incurred by the Mixing Department during October:
 $\begin{array}{lr}
\text { Direct materials } & \$ 133,050 \
\text { Direct labour } & 180,000 \
\text { Overhead (applied) } & 45,000
\end{array}$
-Refer to the figure.There were 2,500 units that were 80 percent complete remaining in Mixing at October 31.What is the amount of total costs to account for?

Quizplus · Accepted Answer

The total costs to account for in the Mixing Department include the costs of the beginning work in process and the costs incurred during October. The calculation is as follows: Beginning WIP costs = $36,000 (Direct materials) + $45,000 (Direct labour) + $15,000 (Overhead) = $96,000. Costs incurred in October = $133,050 (Direct materials) + $180,000 (Direct labour) + $45,000 (Overhead) = $358,050. Total costs = $96,000 + $358,050 = $454,050.

Champ Inc Manufactures a Product That Passes Through Two Processes: Mixing