Tomar Company produces vitamin energy drinks. The Mixing Department, the first p
ID: 2502536 • Letter: T
Question
Tomar Company produces vitamin energy drinks. The Mixing Department, the first process department, mixes the ingredients required for the drinks. The follow data are for April:
Work in process, April 1 0
Quarts started 90,000
Quarts transferred out 75,000
Quarts in Ending WIP 15,000
Direct Labor Costs $84,000
Direct Labor Costs $168,000
Overhead applied $336,000
Prepare a production report or the Mixing Department for April.
Please show steps so I can follow process. Thank you.
Explanation / Answer
Work in process , April 1
0
Quarts started
90,000
Total units
90,000
Units accounted for
Quarts completed and transferred out
75,000
Work in process ending
15,000
Total units
90,000
Costs
Material
Conversion
Total
Costs in April
$84,000
504,000
$588,000
Material cost assumes as $84,000
Conversion cost equals the sum of the labor plus overhead costs.
Work in process , April 1
0
Quarts started
90,000
Total units
90,000
Units accounted for
Quarts completed and transferred out
75,000
Work in process ending
15,000
Total units
90,000
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