Pro Chemicals uses an automated mixing machine in its Mixing Department to combi

Question

Pro Chemicals uses an automated mixing machine in its Mixing Department to combine three raw materials into a product called Trio. On average, each unit of Trio contains $3 of Material X, $6 of Material Y, $9 of Material Z, $2 of direct labor, and $10 of overhead. Total costs charged to the Mixing Department's Work in Progres Inventory account during the month were $210,000. There were no limits in beginning or ending work in progress inventory. How many units wer completed and transferred to finished goods inventory during the month?

Explanation / Answer

Unit Cost:

Material X =$3

Material Y = $6

Material Z = $9

Direct Labor = $2

Overhead = $10

Total Unit Cost = $30

Total Costs Charged = $210000

Unit Cost * Units completed = Total Costs Charged

30 * Units Completed = $210000

Units Completed = 7000

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