Chelsea Manufacturing, Inc., operates a plant that produces its own regionally-marketed Super Salad Dressing. The dressing is
Question:
Chelsea Manufacturing, Inc., operates a plant that produces its own regionally-marketed Super Salad Dressing. The dressing is produced in two processes, blending and bottling. In the Blending Department, all materials are added at the beginning of the process, and labor and overhead are incurred evenly throughout the process. Chelsea uses the weighted average method. The Work in Process—Blending Department account for January 2019 follows:
Work in Process-Blending Department | |
---|---|
January 1 inventory (4,000 gallons, 75% finished) | |
Direct material | $31,200 |
Conversion costs | 8,800 |
Transferred to Bottling Department (70,000 gallons) | |
January charges: | |
Direct material (71,000 gallons) | 568,800 |
Direct labor | 164,000 |
Manufacturing overhead | 184,900 |
January 31 inventory [ ? gallons, 60% processed] |
Required
Calculate the following amounts for the Blending Department:
Number of units in the January 31 inventory.
Equivalent units for materials cost and conversion costs.
January cost per equivalent unit for materials and conversion costs.
Cost of the units transferred to the Bottling Department.
Cost of the incomplete units in the January 31 inventory.
Managerial Accounting
ISBN: 978-1259024900
9th canadian edition
Authors: Ray Garrison, Theresa Libby, Alan Webb