Question: Chemical Inc which uses a process costing system makes a

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:

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

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  • CreatedMarch 26, 2014
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