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5 - 6 x Company uses a process costing system to determine the cost of its vitamin supplement. The supplement passes through three departments: Mixing,

5 - 6

x Company uses a process costing system to determine the cost of its vitamin supplement. The supplement passes through three departments: Mixing, Tableting, and Bottling. In the Mixing Department, all materials are added at the beginning of the process. The mixture is transferred to the Tableting department in gallon containers. One gallon of mixture converts into 1,600 tablets. The Tableting Department also adds materials at the beginning of the process. Completed tablets are transferred to the Bottling Department for packaging. The following information is available for the Mixing and Tableting Departments for the month of July.

Mixing Tableting

Beginning inventory Physical units 5 gallons 4,000 tablets Costs Direct materials $120 $32 Conversion costs 384 50 Transferred in 140 July production Transferred out 125 gallons 198,000 tablets Ending inventory 6 gallons 6,000 tablets Costs Direct materials $3,144 $1,548 Conversion costs 12,288 4,860 Transferred in ----- ? Percentage of completion Beginning inventory 40% 50% Ending inventory 50 40

X Company uses the weighted average method to account for the equivalent units and costs in beginning inventory.

Prepare the July production report for the Tableting Department. (You will also have to do the production report for the Mixing Department to determine the transferred in units and cost.)

HINT: The units transfer out of the Mixing Department as gallons and into the Tableting Department as tablets. You will need to convert from gallons to tablets to determine the physical units transferred in for the Tableting Department.

question 1 -For the Tableting Department, determine the cost transferred out for July. Note: Give your answer using dollar signs and commas but no decimal points (cents).

question 2 For the Tableting Department, determine the cost of ending inventory for July. Note: Give your answer using dollar signs and commas but no decimal points (cents).

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