FIFO Method, Two$-$Department Analysis

During July, the following results are available for tFIFO Method, Two$-$Department Analysis

Healthway uses a process$-$costing system to compute the unit costs of the minerals that it produces. It has three departments: Mixing, Tableting, and Bottling. In Mixing, at the beginning of the process all materials are added and the ingredients for the minerals are measured, sifted, and blended together. The mix is transferred out in gallon containers. The Tableting Department takes the powdered mix and places it in capsules. One gallon of powdered mix converts to $1,600$ capsules. After the capsules are filled and polished, they are transferred to Bottling where they are placed in bottles, which are then affixed with a safety seal and a lid and labeled. Each bottle receives $50$ capsules.

During July, the following results are available for the first two departments $($direct materials are added at the beginning in both departments$)$:

Mixing Tableting

Beginning inventories:

Physical units $5$ gallons $4,000$ capsules

Costs:

Direct materials $$120$ $$32$

Direct labor $12820$

Overhead $??$

Transferred in $140$

Current production:

Transferred out $125$ gallons $198,000$ capsules

Ending inventory $66000$

Costs:

Direct materials $$3,144$ $$1,584$

Transferred in $?$

Direct labor $4,0961,944$

Overhead $??$

Percentage of completion:

Beginning inventory $40\%50\%$

Ending inventory $5040$

Overhead in both departments is applied as a percentage of direct labor costs. In the Mixing Department, overhead is $200$ percent of direct labor. In the Tableting Department, the overhead rate is $150$ percent of direct labor.