Fresh Seasons is a contract manufacturer for Delectable Dressing Company. Fresh Seasons uses a weighted average process costing system to account for its salad dressing production. All ingredients are added at the start of the process. Delectable provides reusable vats to Fresh Seasons for the completed product to be shipped to Delectable for bottling, so Fresh Seasons incurs no packaging costs. April 2010 production and cost information for Fresh Seasons is as follows:

Gallons of dressing in beginning WIP Inventory .......... 36,000

Gallons completed during April .............242,000

Gallons of dressing in ending WIP Inventory ........ 23,500

Costs of beginning WIP Inventory

Direct material ................. $183,510

Direct labor ................... 98,526

Overhead ........................ 78,273

Costs incurred in April

Direct material ............... $1,136,025

Direct labor .................. 451,450

Overhead ..................723,195

April beginning and ending WIP inventories had the following percentages of completion for labor and overhead:

a. How many gallons of dressing ingredients were started in April?
b. What is the total cost of the goods transferred out during April?
c. What is the cost of April's ending WIPInventory?

Transcribed Image Text:

April 1 55% 10% April 30 Direct labor Overhead 15%