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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Total Cost Unit Cost Department A: Direct materials Direct labor Overhead Total costs $9,000 2,600 1.300 $12,900 $0.90 0.26 0.13 $1.29 Department B Direct materials Direct labor Overhead Total costs 5 3,000 700 1,000 4,700 $17,600 $0.30 0.07 0.10 $0.47 $1.76 Totals