Question: A). Omega Processing Company uses a process cost system with two departments: (a) a Refining Department, and (b) a Packaging Department. During June, its first month of operations, the company manufactured and sold 350,000 gallons of motor oil, generating total revenue of $2,845,000. The company incurred the following manufacturing costs in June:
Refining Dept. Packaging Dept.
Direct materials............................................................$570000 $152500
Direct Labor..................................................................120000 35000
Manufacturing Overhead..................................................657000 90000
(a) How much was the unit cost per gallon of oil processed by the Refining Department in June?
(b) If each case of oil contains four gallons how much was the unit cost per case incurred by the Packaging Department in June?
(c) How much was the unit cost per case transferred to finished goods in June?
(d) The total gross profit (sales less cost of goods sold) generated by the company in June was how much?
(e) If 600,000 gallons were in beginning inventory, 160,000 gallons were started and 400,000 gallons were in the ending inventory, how many gallons were completed and transferred out?