Rawlings, Inc. manufactures a product that passes through two processes: mixing
ID: 2554870 • 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
2500 UNITS THAT WERE 80 PERCENT COMPLETED REMAINING IN MIXING AT JANUARY 31 FROM LISTED FROM EARLIER QUESTION
Work in process, January 1: Units (35% complete) 7,500 Direct materials $36,000 Direct labor $45,000 Overhead $15,000Explanation / Answer
Computation of equivalent unit of Production Particulars Physical units Material Conversion Unit completed from opening WIP 7500 4875 4875 Unit started and completed currently 19250 19250 19250 Ending WIP 2500 2000 2000 Total and equivalent units 29250 26125 26125 Computation of Cost per equivalent unit of Production Particulars Material Conversion Total Opening WIP $36,000 $60,000 $96,000 Cost Added during Janauary $133,050 $225,000 $358,050 Total cost to be accounted for $169,050 $285,000 $454,050 Equivalent units of production 26125 26125 26125 Cost per Equivalent unit $6.47 $10.91 $17.38 Hence Cost of Ending January WIP will be ( $17.38*2000)=$34760
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