1) Story Manufacturing produces a chemical pesticide and uses process costing. There are three processing departmentsMixing, Refining, and Packaging. On January 1, the first departmentMixinghad a zero beginning balance. During January, 42,000 gallons of chemicals were started into production. During the month, 34,000 gallons were completed, and 8,000 remained in process, partially completed. In the Mixing Department, all direct materials are added at the beginning of the production process, and conversion costs are applied evenly through the process.

During January, the Mixing Department incurred $63,000 in direct materials costs and $240,000 in conversion costs. At the end of the month, the ending inventory in the Mixing Department was 60% complete with respect to conversion costs. First, calculate the equivalent units, then calculate the cost per equivalent unit, and then calculate the total cost of the product that was completed and transferred out during January. The weighted-average method is used.

Using this data, calculate the full cost of the ending WIP balance in the Mixing Department, and the cost of the units that were transferred out of the Mixing Department and into the Refining Department.