Ceramic Painting prepares and packages paint products. Ceramic Painting has two departments: Blending and Packaging. Direct materials are added at the beginning of the blending process (dyes) and at the end of the packaging process (cans). Conversion costs are added evenly throughout each process. Data from the month of May for the
Blending Department are as follows:
Gallons
Beginning Work-in-Process Inventory............ 0 gallons
Started in production...................9,500 gallons
Completed and transferred out to Packaging in May........6,000 gallons
Ending Work-in-Process Inventory
(30% of the way through the blending process).........3,500 gallons
Costs
Beginning Work-in-Process Inventory............. $ 0
Costs added during May:
Direct materials...................... 5,700
Direct labor....................... 2,085
Manufacturing overhead allocated.............. 2,004
Total costs added during May.................. $ 9,789
Requirements
1. Compute the Blending Department’s equivalent units of production for direct materials and for conversion costs.
2. Compute the total costs of the units (gallons)
a. completed and transferred out to the Packaging Department.
b. in the Blending Department ending Work-in-Process Inventory.