Conti Pharmaceutical Company processes a single compound product known as Nulax and uses standard costing in a process cost accumulation system. The process requires preparation and blending of three direct materials in large batches, with a variation from the standard mixture sometimes necessary to maintain quality. Conti's cost accountant became ill at the end of October 19XX. and you were engaged to determine standard costs for October's production. The following information is available for the Blending Department: lop5

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1 The standard cost card for a 500-pound batch shows the following standard costs; Direct materials: Mucilloid Dextrose Other ingredients Total per batch Direct labor: Preparation and blending Factory overhead: Total Quantity Price cost 250 lb $.14 $ 35 200 lb .09 18 50 lb .08 4 500 $ 57 10 hr $3.00 30 Variable 10 hr 1.00 10 Fixed 10 hr .30 3 Total standard cost per 500-lb batch $100 2 During October, 410 batches of 500 pounds each of the finished product were completed and transferred to the Packaging Department. 3 Blending Department inventories totaled 6,000 pounds each at the beginning of the month and 9.000 pounds each at the end of the month (assume both inventories were completely processed but not transferred and that both consisted of direct materials in their standard proportions). Inventories are carried in the accounts at standard prices. 4 During the month of October, the following direct materials were purchased and put into production: