On January 1, 2014, the first department, mixing, had no beginning inventory. During January, 40,000 fl. oz. of chemicals were started in production. Of these, 32,000 fl. oz. were completed and 8,000 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 through the process.

At the end of January, the equivalent unit data for the Mixing Department were as follows:

In addition to the above, the costs per equivalent unit were $1.20 for direct materials and $5.75 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) $211,600

B) $48,000

C) $222,400

D) $37,200

Transcribed Image Text:

UNITS Units to account for Completed End bal. WIP Whole Units Equivalent Units 32,000 8,000 40,000 Direct Materials Cost 32,000 8,000 40,000 Equivalent Units Conversion Cost 32,000 4,800 36,800 UNITS Units to account for Completed End bal. WIP Whole Units Equivalent Units 32,000 8,000 40,000 Direct Materials Cost 32,000 8,000 40,000 Equivalent Units Conversion Cost 32,000 4,800 36,800

Answer rating: 100% (QA)

C 222400 Explanation Cost of tra... View the full answer