Extraordinary Incorporated manufactures quality hair care products. The ingredients are combined in the mixing department and put in 473 mL containers in the packaging department.
The following information pertains to the mixing department for the month of March:
Units
(Litres)
Work-in-Process Inventory, March 1
(100% complete materials,
75% labour and overhead) 10,000
Started during March 50,000
Work-in-Process Inventory, March 31
(100% complete materials,
50% labour and overhead) 8,000
The costs in Work-in-Process Inventory at March 1 in the mixing department were as follows:
Mixing
Department
Work-in-Process Inventory, March 1:
Materials $15,000
Direct labour 20,000
Manufacturing overhead 17,600
Total costs $52,600
The costs added by the mixing department during the month of March were as follows:
Mixing
Department
Materials $ 90,000
Direct labour 120,000
Manufacturing overhead 100,000
Total costs added $310,000
Round unit costs to two decimal places.
Required:
A. Prepare a physical flow schedule for the mixing department for March.
B. Using the weighted average costing method, determine the equivalent units of production for materials and conversion for the mixing department for March.
C. Using the weighted average costing method, determine the cost per equivalent unit of production for materials and conversion for the mixing department for March.
D. Using the weighted average costing method, determine the cost of goods transferred out and the cost of ending Work-in-Process Inventory for the mixing department.
