LDR Manufacturing produces a chemical pesticide 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:

-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 chemical pesticide 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:
 
-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 multiply the equivalent units by the cost per equivalent unit and add up the costs for direct materials and conversion costs separately.

For direct materials:

Total cost = 8,000 (equivalent units) x $5.50 (cost per equivalent unit) = $44,000

For conversion costs:

Total cost = 32,000 (completed units) x $3.60 (cost per equivalent unit) + 8,000 (equivalent units) x $3.60 (cost per equivalent unit) = $153,600

So the full cost of the ending balance in the Mixing Department is $44,000 + $153,600 = $197,600.

Therefore, the best choice is C, $61,280. This answer is incorrect as it only represents the conversion costs for the ending balance. It does not include the direct materials cost.

LDR Manufacturing Produces a Chemical Pesticide and Uses Process Costing