Barr inc., manufactures a product that passes through two processes: mixing and

Question

Barr inc., manufactures a product that passes through two processes: mixing and packaging. All manufacturing costs are added uniformly in the mixing department. Information for the mixing department for June follows: During June, 80,000 units were completed and transferred to packaging. The following costs were incurred by the mixing department during June: At June 30, 12,000 units that were 10 per cent complete remained in the mixing department. Use the weighted average method and round unit costs to two decimal places. Determine equivalent units of production for June. Determine June's total costs to account for. Determine total cost per equivalent unit of production. Determine the cost of goods transferred to the packaging department. Determine the cost of June's ending work in process for the mixing department

Explanation / Answer

A

Equivalent units of Production= 81200

B

Beginning inventory Cost ($20,000+$24,000+$4000) $48000

Cost Incurred in the Month of June ($180,000+$200,000+$59200) $439200

Total Cost to Account $487200

C Cost of Direct Materials= ($20000+$180000)=$200000

Cost per Equivalent Units of materials= $200000/81200=$2.46

   Cost of Labour and Overhead= ($28,000+$259200)=$287200

   Cost per Equivalent Units of Labour and Overhead= $287200/81200=$3.54

D Cost of Goods Transfered= 80000 Units*($2.46+$3.54)

   =$480,000

E Ending Work in Process= 1200*6

   =$7200

Physical Units Equivalent Units Units Completed 80000 80000 Unit in Ending Work in Process (10% Complete) 12000 1200 Total Units Accounted for 92000 81200

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