Question
Paraquat manufacturing produces a chemical herbicide and uses process costing. There are three processing departments, mixing, refining, and packaging. On January 1, the first department,
Paraquat manufacturing produces a chemical herbicide and uses process costing. There are three processing departments, mixing, refining, and packaging. On January 1, the first department, Maxine, had a zero beginning balance. During the January, 42,000 gallons of chemicals were started into production. During the month, 33,000 gallons were completed, and 9000 remains in process, partially completed. During January, The mixing department incurred $61,000 in direct materials cost and 250,000 in conversion cost. 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, then calculate the total cost of the product that was completed and transferred out during January. The weighted average method is used. And then question, the total cost of the production transferred out was what?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started