Final answer:
The cost transferred to the Filling department includes all direct materials, direct labor, and manufacturing overhead costs from the Blending department. This encapsulates the raw materials and conversion costs required to prepare the products for the next stage of the manufacturing process.
Step-by-step explanation:
The cost transferred to the Filling department from the Blending department in a process manufacturing setting like Rameriz Company includes the cost of all direct materials, direct labor, and manufacturing overhead that have been incurred in the Blending department. Since all direct materials are introduced in Blending, the cost includes the raw material costs as well as any additional costs related to the conversion of these materials into a product that is ready for the next phase, which is Filling. The conversion costs include both direct labor - the workforce directly contributing to the manufacture - and manufacturing overhead, which encompasses all indirect costs such as indirect labor, utilities, and maintenance associated with running the Blending department.
Therefore, when products are moved from Blending to Filling, the total cost accumulated within the Blending department associated with those products is passed along. This is a critical step in accurately capturing production costs and ensuring proper inventory valuation.