E4.28

Process costing; no work in process: manufacturer

Sugary Drink Ltd produces a soft drink called Fizz Cola, in two-litre bottles.

Production takes place in two departments: Mixing and Packing. The

manufacturing costs for each department for July were:

Mixing

Packing

Direct materials

$37 500

$7 500

Direct labour

18 000

6 000

Manufacturing overhead

10 800

3 600

In July the company produced 140 000 litres of Fizz Cola, which was packed into

70 000 bottles.