Eclypso Inc. manufactures a product that passes through two processes: mixing an

Question

Eclypso Inc. manufactures a product that passes through two processes: mixing and molding All manufacturing costs are added uniformly in the mixing department Information for the mixing department for October is as follows: Work in process, October 1: Units (45% complete) 7,200 Direct materials $42,000 Direct labor $50,400 verhead $14,400 During October, 38,400 units were completed and transferred to the molding departmert The following costs were incurred by the mixing department during October Direct materials $144,000 Direct labor $192,000 Overhead $60,000 By October 31, the 3,600 units that were 85% complete remained in mixing department. Eclypso uses the weighted average method. Which of the following is Eclypso's cost of October's ending work in process for the mixing department? (Note: Round answer to two decimal places.)

Explanation / Answer

Solution:

Therefore cost of ending WIP for mixing department in October = $37,117.80

Hence 3rd option is correct.

Computation of Equivalent unit of Production - Weighted Average Particulars Physical Units Material Conversion Unit completed & Transferred out 38400 38400 38400 Closing WIP: 3600 Material (85%) 3060 Conversion (85%) 3060 Equivalent units of production 42000 41460 41460

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