Calculator Print Itenm Eclypso Inc. manufactures a product that passes through t

Question

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

Explanation / Answer

Solution:

Option C is correct. ($465,792)

Units completed 38,400
Add: Units in ending work in process (3,600 × 85%) 3,060
Total equivalent units 41,460

Costs to account for: Conversion
Materials Cost Total
Beginning work in process $ 42,000 $ 64,800 * $106,800
Incurred during the period $144,000 $ 252,000 ** $396,000
Total costs to account for $186,000 $ 316,800 $502,800

*(Direct labor + Overhead) = ($50,400 + $14,400) = $64,800
**(Direct labor + Overhead) = ($192,000 + $60,000) = $252,000
Cost per equivalent unit ($502,800 / 41,460 units) = $12.13

Cost of goods transferred to molding department = $12.13 x $38,400 = $465,792

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