Eclypso Inc.manufactures a product that passes through two processes: mixing and molding.All manufacturing costs are added uniformly in the mixing department. Information for the mixing department for October is as follows:

During October, 38,400 units were completed and transferred to the molding department.The following costs were incurred by the mixing department during October:

- By October 31, the 3,600 units that were 85% complete remained in mixing department.Eclypso uses the weighted average method.Which of the following is Eclypso's cost of October's ending work in process for the mixing department? (Note: Round answer to two decimal places.)
A) $27,500.40
B) $29,200.60
C) $22,520.50
D) $37,117.80

Question

Eclypso Inc.manufactures a product that passes through two processes: mixing and molding.All manufacturing costs are added uniformly in the mixing department. Information for the mixing department for October is as follows:
 
 During October, 38,400 units were completed and transferred to the molding department.The following costs were incurred by the mixing department during October:

-  By October 31, the 3,600 units that were 85% complete remained in mixing department.Eclypso uses the weighted average method.Which of the following is Eclypso's cost of October's ending work in process for the mixing department? (Note: Round answer to two decimal places.)
A) $27,500.40 
B) $29,200.60 
C) $22,520.50 
D) $37,117.80

Quizplus · Accepted Answer

Equivalent Units = Units Completed + Units in EWIP × Fraction Complete
 
 11ea8a4c_48d3_d056_a0e6_83b04bef6c2a_TB5550_00 11ea8a4c_48d3_d057_a0e6_f1ca8eb9f229_TB5550_00  
 
 *(Direct labor + Overhead) = ($50,400 + $14,400) = $64,800
**(Direct labor + Overhead) = ($192,000 + $60,000) = $252,000
Cost per equivalent unit ($502,800 / 41,460 units) = $12.13
Cost of October's ending work in process for the mixing department = (Units remained in mixing department) × (Cost per equivalent unit) = 3,060 units × $12.13 = $37,117.80