Rawlings, Inc. manufactures a product that passes through two processes: mixing
ID: 2554791 • Letter: R
Question
Rawlings, 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 January follows:
During January, 26,750 units were completed and transferred to the Molding Department. The following costs were incurred by the Mixing Department during January:
The cost of January's ending work in process for the Mixing Department using the FIFO method is
There were 2500 units that were 80 percent complete remaining in mising at january 31
Work in process, January 1: Units (35% complete) 7,500 Direct materials $36,000 Direct labor $45,000 Overhead $15,000Explanation / Answer
Calculation of Effective units of production
2000
Total cost for the month Janaury = (133050 + 180000 + 45000) = $358050
Cost per equivelent unit manufactured = 358050 / 26125 = $13.70
Cost of ending WIP inventory of Janaury = (2500 x 80% x 13.70) = $27400
Additionaly mixing process account can be prepared for janaury as follows for better understanding.
426650
(Bal.Fig.)
Completed Units 26750 Add: Closing WIP Equivelents Units (2500 x 80%)2000
Less : Opening WIP Equivelents Units (7500 x 35%) 2625 Effective units production for the months 26125Related Questions
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