Pattern Manufacturing produces a chemical pesticide and uses process costing

Question

There are three processing departments-Mixing, Refining, and Packaging. On January 1, the first department-Mixing-had no beginning inventory. During January, 48,000 fl. oz. of chemicals were started in production. Of these, 40,000 fl. oz. were completed, and 8,000 fl. oz. remained in process. In the Mixing Department, all direct materials are added at the beginning of the production process, and conversion costs are applied evenly through the process.

At the end of January, the equivalent unit data for the Mixing Department were as follows:

WHOLE UNITS Equivalent Units Equivalent Units
Units to be accounted for Direct Materials Costs Conversion Costs
Completed and transferred out 40,000 40,000 40,000
Ending work-in-process* 8,000 8,000 3,520
48,000 48,000 43,520
* Percent complete for conversion costs: 44%

In addition to the above, the costs per equivalent unit were $1.35 for direct materials and $5.30 for conversion costs. Using this data, calculate the full cost of the ending WIP balance in the Mixing Department. The weighted-average method is used.
A) $43,520
B) $10,800
C) $29,456
D) $64,800

Answer 1

C .C)
Cost of ending inventory: Equivalent units Cost per EUP Total Cost
Direct materials 8,000 $1.35 $10,800
Conversion 3,520 5.30 18,656
Total costs $29,456