Test: Week #3 Exam #5 This Test: 18 pts possible 90118 (5 complete) This Questio

Question

Test: Week #3 Exam #5 This Test: 18 pts possible 90118 (5 complete) This Question: 1 pt departments-Mbing, Retining, and Packaging. On January 1, the drect materials are added at the beginning of the production process, and Story Manufacturing produces a chemical pesticide and uses process costing. There are three processing first department Moing-had a zero beginning balance. During January, 42,000 gallions of chemicals were started into production. During the month, 33,000 galons were completed, and 9,000 remained in process, partialy completed. In the Mixing Department, all conversion costs are applied evenly through the process During January, the Moxing Department incurred $60,000 in direct materials costs and $250,000 in conversion costs. At the end of the month, the ending inventory in the Mong Dep ent was 6 % complete with esped to cor ers on costs First, cal late e equivalent units then cal ulate the cost per equivalent and then calculate the total cost of the product that was completed and transferred out during January. The weighted-average method is used The total cost of product transferred out was (Round any intermediate calculations two decimal places, and your final answer to the nearest dollar.) O A. $250,000 O B. $47,143 O C. $262,020 O D. $310,000

Explanation / Answer

1. Equivalent units of material = 33000+9000 = 42000

Equivalent units of conversion = 33000+(9000*60%) = 38400

Cost per equivalent unit of material = 60000/42000 = 1.43

Cost per equivalent unit of conversion = 250000/38400 = 6.51

Cost of products transferred out = (1.43+6.57)*33000 = 262020

So answer is c) $262020

2) question data is not complete

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