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Prize Mustard uses a process costing system with two departments: (a) a Mixing Department, and (b) a Bottling Department. During May, Prize generated $120,000 in
Prize Mustard uses a process costing system with two departments: (a) a Mixing Department, and (b) a Bottling Department. During May, Prize generated $120,000 in revenue by producing 40,000 gallons (10,000 cases) of mustard. The companyreduces its work in process inventories to zero eachmonth. Manufacturing costs for May are as follows Mixing Bottling Department Department Direct materials Direct labor Manufacturing overhea $16,000 $5,600 $11,400 $6,000 S3,900 $8,100 1 Refer to the above data. The unit cost per gallon of mustard processed by the Mixing Department in May was $ 2 Refer to the above data. The unit cost per case of mustard incurred by the Bottling Department in May was $ Refer to the above data. The total cost ofthe 10,000 cases transferred to finished goods in May was S 3 4 Refer to the above data. Assume that 9,500 cases of mustard were sold in May The amount charged to cost of goods sold in May S 5 Refer to the above data. Assume that $9,000 of finished goods were on hand at May 1. Under the LIFO method of inventory valuation, finished goods inventory at May 31 was S if 9.500 cases of mustard were sold in May
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