Eco-Eliminator Manufacturing produces a chemical pesticide and uses process costing. There are three processing departments—Mixing, Refining, and Packaging. On January 1, the first department—Mixing—had no beginning inventory. During January, 41,000 fl. oz. of chemicals were started in production. Of these, 32,000 fl. oz. were completed, and 9000 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 throughout the process. The weighted-average method is used.
At the end of January, the equivalent unit data for the Mixing Department were as follows:
In addition to the above, the cost per equivalent unit were $1.80 for direct materials and $5.25 for conversion costs. Using this data, calculate the cost of the units that were transferred out of the Mixing Department and into the Refining Department.
A) $168,000
B) $110,400
C) $225,600
D) $57,600
C) $225,600
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