Work in Process Inventory Accounts in Process Costing Systems

Chemical, Inc., which uses a process costing system, makes a chemical used as a preservative. The manufacturing process involves Departments A and B. The company had the following total costs and unit costs for completed production last month, when it manufactured 10,000 pounds of the chemical. Neither Department A nor Department B had any beginning or ending work in process inventories.

	Total cost		Unit cost
Department A:
Direct materials	$ 9,000		$ 0.90
Direct labor	2,600		0.26
Overhead	1,300		0.13
Total costs	$ 12,900		$ 1.29
Department B:
Direct materials	$ 3,000		$ 0.30
Direct labor	700		0.07
Overhead	1,000		0.10
Total costs	$ 4,700		$ 0.47
Totals	$ 17,600		$ 1.76

1. How many Work in Process Inventory accounts would Chemical, Inc., use? accounts

2. What dollar amount of the chemical's production cost was transferred from Department A to Department B last month? $

3. What dollar amount was transferred from Department B to the Finished Goods Inventory account? $

4. What dollar amount is useful in determining a selling price for 1 pound of the chemical? $ per round