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uiz company uses a process costing system to determine the cost of its vitamin supplement. The supplement passes through three departaments: Mixing, Tableting and Bottling.
uiz company uses a process costing system to determine the cost of its vitamin supplement. The supplement passes through three departaments: Mixing, Tableting and Bottling. In the Moxing departament, all materials are added at the beginning of the process. The mixture is transferred to the tableting departament in gallon containers. One gallon of mixture converts into 1,600 tablets. The tableting departament also adds materials at the beginning of the process. Completed tablets are transferred to the Bottling departament for packaging the following information is available for the mixing and Tableting departaments for the month of july. Mixing Tableting Beg. Inventory Physical units Costs Direct materials 5 Gallons 4,000 Tablets $120 $32 Conversion costs 384 50 140 July Production Transferred in Transferred out 125 Gallons 198,000 Tablets Ending inventoy 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 Ending inventoy 40% 50% 50 40 Quiz company unes the weighted average method to account for the equivalent units and costs in beginning inventory trandemed in units and co
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