Questions:
Computing unit cost for department and for completed units with beginning inventory
U.S. Grant Company has two production departments. Blending had 1,000 units in process at the beginning of the period, two fifths complete. During the period 7,800 units were received from Mixing, 8,200 units were transferred to Finished Goods, and 600 units were in process at the end of the period, 1/3 complete. The cost of the beginning work in process was:
|
Cost in Mixing
|
$10,000
|
|
Cost in Blending:
|
|
|
Materials
|
200
|
|
Labor
|
500
|
|
Factory overhead
|
300
|
The costs during the month were:
|
Cost of goods received from Mixing
|
$78,000
|
|
Cost in Blending:
|
|
|
Materials
|
3,328
|
|
Labor
|
10,000
|
|
Factory overhead
|
$6,672
|
a. Determine the unit cost for the month in Blending.
b. Determine the total cost of the products transferred to finished goods.
c. Determine the total cost of the ending work in process inventory.