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Burtard Chemical Makes a Variety of Chemicals Units started and completed 8,000 Units started and 30% complete 2,500\begin{array} { l } \text {Units started and completed }&8,000\\\text { Units started and } 30 \% \text { complete }&2,500\\\end{array}

Question 118

Essay

Burtard Chemical makes a variety of chemicals.The company uses process costing.Materials are added at the end of the process.Conversion costs are added evenly throughout the process.The company has no beginning work-in-process inventory.The Mixing Department had the following data:
Units started and completed 8,000 Units started and 30% complete 2,500\begin{array} { l } \text {Units started and completed }&8,000\\\text { Units started and } 30 \% \text { complete }&2,500\\\end{array}

Direct materials costs $126,000Direct labor costs $31,250 Factory overhead costs$30,000\begin{array} { l } \text {Direct materials costs }&\$126,000 \\ \text {Direct labor costs }&\$31,250 \\ \text { Factory overhead costs}&\$30,000 \\\end{array}

Required:
A) Compute the equivalent units for materials and conversion costs.
B) Compute the cost per unit for materials and conversion costs.
C) Compute the cost of the goods completed and transferred.
D) Compute the cost of the ending work-in-process inventory.

Correct Answer:

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A)Materials 8,000
Conversion c...

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