Vaasa Chemicals has a Mixing Department and a Rening Department. Its process-costing system in the Mixing Department has two direct material cost categories (Chemical P
Vaasa Chemicals has a Mixing Department and a Rening Department. Its process-costing system in the Mixing Department has two direct material cost categories (Chemical P and Chemical Q) and one conversion costs pool. The following pertain to the Mixing Department for July 20xx: Units: Work in process, July 1 0 Units started 50,000 Completed and transferred to Rening Department 35,000 Costs added during the period: (For both units transferred out and in ending Inventory) Chemical P $250,000 Chemical Q 70,000 Conversion costs 135,000 Chemical P is introduced at the start of operations in the Mixing Department, and chemical Q is added when the product is three-fourths completed (regarding conversion costs) in the Mixing Department. Conversion costs are added evenly during the process. The ending work in process in the Mixing Department is two-thirds complete (regarding conversion costs)
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