EcoEliminator

Manufacturing produces a chemical pesticide and uses process costing. There are three processing

departmentsMixing,

Refining, and Packaging. On January 1, the first

departmentMixinghad

no beginning inventory. During January,

50,000

fl. oz. of chemicals were started in production. Of these,

42,000

fl. oz. were completed, and

8,000

fl. oz. remained in process. In the Mixing Department, all direct materials are added at the beginning of the production process, and conversion costs are applied evenly throughout the process. The

weightedaverage

method is used.

At the end of January, the equivalent unit data for the Mixing Department were as follows:

UNITS		Equivalent Units	Equivalent Units
Units to be accounted for		Direct Materials Costs	Conversion Costs
Completed and transferred out	42,000	42,000	42,000
Ending workinprocess*	8,000	8,000	3,200
	50,000	50,000	45,200

* Percent complete for conversion costs: 40%

In addition to the above, the costs per equivalent unit were

$1.70

for direct materials and

$6.50

for conversion costs. Using this data, calculate the cost of the units that were transferred out of the Mixing Department and into the Refining Department.

A.

$201,600

B.

$273,000

C.

$71,400

D.

$344,400