Gravity Manufacturing produces a chemical pesticide and uses process costing. There are three processing

departments long dash—Mixing,

Refining, and Packaging. On January 1, the first department long dash—Mixing long dash—had no beginning inventory. During January, 47,000 fl. oz. of chemicals were started in production. Of these, 38,000 fl. oz. were completed, and 9,000 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 throughout the process. The weighted-average method is used.

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

UNITS		Equivalent Units	Equivalent Units
Units accounted for		Direct Materials Costs	Conversion Costs
Completed and transferred	32,000	32,000	32,000
Ending workminus−inminus−process*	9,000	9,000	3,600
	41,000	41,000	35,600

* Percent complete for conversion costs: 40%

In addition to the above, the cost per equivalent unit were $1.80 for direct materials and $5.25 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.$110,400

B.$57,600

C.$168,000

D.$225,600

Answer rating: 100% (QA)

Total cost per equivalent unit Direct material p... View the full answer