Question

Ecominus Eliminator Manufacturing produces a chemical pesticide and uses process costing. There are three processing departmentslong dash​Mixing, ​Refining, and Packaging. On January​ 1, the first departmentlong dashMixinglong dashhad no beginning inventory. During​ January, 48 comma 000 fl. oz. of chemicals were started in production. Of​ these, 38 comma 000 fl. oz. were​ completed, and 10 comma 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 throughout the process. The weightedminusaverage method is used.

At the end of January, the equivalent unit data for the Mixing Department were as follows:
WHOLE UNITS Equivalent Units Equivalent Units
Units to be accounted for Direct Materials Cost Conversion Costs
Completed and transferred out 38,000 38,000 38,000
Ending work-in-process 10,000 10,000 44,00
48,000 48,000 42,400
Percent complete for conversion costs: 44%
In addition to the above, the costs per equivalent unit were $1.35 for direct m conversion costs. Using this data, calculate the full cost of the ending WIP balance in the Mixing Department. The weighted-average method is used.
A) $36,380
B) $13,500
C) $64,800
D) $42,400

Answer 1

A) $36,380

INCOMPLETE INFORMATION

The text from the book states:

$1.35 direct materials equivalent unit cost

$5.20 conversion cost equivalent unit cost

Step-by-step explanation:

We must look at the ending work-in-process line and multiply the above equivalent cost by the units to be accounted for on each category

10,000 units x $ 1.35 materials cost = $ 13,500 material cost

4,400 units x $5.20 conversion cost = $ 22,880 converion cost

total cost 22,880 + 13,500 = 36,380