Twert Corporation manufactures crayons. Their crayons require three processes: mixing, molding and packaging. In the mixing department, materials are added at the beginning of the process. At the end of last month, conversion costs were $70\%$ complete as to the $56,400$ units in WIP. By the end of August, conversion costs were $80\%$ complete as to the $23,800$ units in WIP. During August, a total of $74,500$ units were completed and were transferred to the molding department. The following shows the costs relating to the mixing department WIP at August $1$ and the production activity for August.

Costs WIP at August $1$ Costs added in August

Direct Materials $$24,600$ $$90,600$

Conversion $$31,600$ $$122,200$

a$)$ Calculate the total equivalent units for direct materials and conversion costs for August? Twert uses the weighted average method to track costs.

b$)$ What is the cost per equivalent unit for direct materials and conversion cost?

c$)$ What is the cost of the units transferred to the molding department?

d$)$ What is the cost of ending inventory in the mixing department?

Answer rating: 100% (QA)

a Total Equivalent Units Calculation 1 Direct Materials Ending WIP units 56400 units Completed units ... View the full answer