Question

Pestiferous 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, 47,000 fl. oz. of chemicals were started in production. Of​ these, 38,000 fl. oz. were​ completed, and 9,000 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. At the end of​ January, the equivalent unit data for the Mixing Department were as​ follows: UNITS Equivalent Units Equivalent Units Units to be accounted for Direct Materials Costs Conversion Costs Completed and transferred out 38,000 38,000 38,000 Ending workminusinminus​process* 9,000 9,000 3,960 47,000 47,000 41,960 ​* Percent complete for conversion​ costs: 44% In addition to the​ above, the cost per equivalent unit were $ 1.35 for direct materials and $ 5.20 for conversion costs. Using this​ data, calculate the full cost of the ending WIP balance in the Mixing Department. The weightedminusaverage method is used.

A. $ 63,450
B. $ 41,960
C. $ 32,742
D. $ 12,150

Answer 1

C. $ 32,742

Step-by-step explanation:

The cost per equivalent unit were $ 1.35 for direct materials and $ 5.20 for conversion costs.

The Ending Work In Process has Equivalent Units 9000 complete as to materials and 44% complete as to Conversion Costs.

So the costs will be

Materials = 9000 *100% * $ 1.35 = $ 12150

Conversion = 9000 * 44% * 5.20 = $ 20592

Total Costs $ 32742

The Ending Work in Process costs are found by multiplying the unit costs with the Equivalent number of units multiplied with the percentage of completion.