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

Question 130

Essay

Trush Inc. manufactures a product that passes through two processes: mixing and packaging. All manufacturing costs are added uniformly in the mixing department.
Information for the mixing department for July follows:
Work-in-Process Inventory, July 1:
Units (30% complete) 15,000
Direct materials $ 4,000
Direct labour $ 3,000
Overhead $ 2,376
During July, 100,000 units were completed and transferred to packaging.
The following costs were incurred by the mixing department during July:
Direct materials $50,000
Direct labour 30,000
Overhead 12,000
At July 31, 8,000 units that were 70% complete remained in the mixing department.
Use the weighted average costing method, and round unit costs to two decimal places.
Required:
A. Determine equivalent units of production for July for the mixing department.
B. Determine July's total costs to account for in the mixing department.
C. Determine total cost per equivalent unit of production for the mixing department.
D. Determine the cost of goods transferred to the packaging department.
E. Determine the cost of July's ending Work-in-Process Inventory for the mixing department.
F. Determine the equivalent units of production for July if ending inventory had been 80% complete.

Correct Answer:

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