LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing departments-Mixing, Refining, and Packaging. On January 1, 2014, the first department, Mixing, had no beginning inventory. During January, 40,000 fl. oz. of chemicals were started in production. Of these, 32,000 fl. oz. were completed and 8,000 fl. oz. remained in process. In the Mixing Department, all direct materials are added at the beginning of the production process and conversion costs are applied evenly through the process.
At the end of January, the equivalent unit data for the Mixing Department were as follows:
$$\begin{array} { | l | r | r | r | }
\hline \text { UNITS } & \text { Whole Units } & \text { Equivalent Units } & \text { Equivalent Units } \
\hline \text { Units to account for } & & \text { Direct Materials Cost } & \text { Conversion Cost } \
\hline \text { Completed } & 32,000 & 32,000 & 32,000 \
\hline \text { End bal. WIP } & 8,000 & 8,000 & 4,800 \
\hline & 40,000 & 40,000 & 36,800 \
\hline
\end{array}$$ In addition to the above, the costs per equivalent unit were $5.50 for direct materials and $3.60 for conversion costs. Using this data, calculate the full cost of the ending balance in the Mixing Department.

Question

LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing departments-Mixing, Refining, and Packaging. On January 1, 2014, the first department, Mixing, had no beginning inventory. During January, 40,000 fl. oz. of chemicals were started in production. Of these, 32,000 fl. oz. were completed and 8,000 fl. oz. remained in process. In the Mixing Department, all direct materials are added at the beginning of the production process and conversion costs are applied evenly through the process. 
At the end of January, the equivalent unit data for the Mixing Department were as follows:
$$\begin{array} { | l | r | r | r | } 
\hline \text { UNITS } & \text { Whole Units } & \text { Equivalent Units } & \text { Equivalent Units } \
\hline \text { Units to account for } & & \text { Direct Materials Cost } & \text { Conversion Cost } \
\hline \text { Completed } & 32,000 & 32,000 & 32,000 \
\hline \text { End bal. WIP } & 8,000 & 8,000 & 4,800 \
\hline & 40,000 & 40,000 & 36,800 \
\hline
\end{array}$$ In addition to the above, the costs per equivalent unit were $5.50 for direct materials and $3.60 for conversion costs. Using this data, calculate the full cost of the ending balance in the Mixing Department.

Quizplus · Accepted Answer

To calculate the full cost of the ending balance in the Mixing Department, we need to add up the direct materials cost and conversion cost for the ending balance units.

For direct materials cost, we have: 
$5.50 per equivalent unit x 8,000 equivalent units = $44,000

For conversion cost, we have: 
$3.60 per equivalent unit x 4,800 equivalent units = $17,280

Therefore, the full cost of the ending balance in the Mixing Department is:
$44,000 + $17,280 = $61,280

Therefore, the best choice is C.

LDR Manufacturing Produces a Pesticide Chemical and Uses Process Costing