Rawlings, Inc. manufactures a product that passes through two processes: mixing

Question

Rawlings, Inc. manufactures a product that passes through two processes: mixing and molding. All manufacturing costs (that is, direct materials and conversion costs) are added uniformly in the Mixing Department. Information for the Mixing Department for January follows: ork in process, January 1 Units (35% complete) $36 $45 $15 t materials t labor verhead During January, 26,750 units were completed and transferred to the Molding Department. 3,750 units that were 80% complete were still in the Mixing Department at the end of January. The following costs were incurred by the Mixing Department during January: $133,05 180, 45 t materials t labor Manufacturing Overhead The cost of January's ending work in process for the Mixing Department using the FIFO method is $26,250 $50,400 $63,000 $39,600

Explanation / Answer

Equivalent units Physical units Materials Labor Overhead Beginning inventory 7500 4875 4875 4875 Units started and completed 19250 19250 19250 19250 Ending inventory 3750 3000 3000 3000 Total units 30500 27125 27125 27125 Materials Labor Overhead Current costs 133050 180000 45000 Equivalent units 27125 27125 27125 Cost per Equivalent unit 4.9051 6.6359 1.6590 Cost of ending work in process = 3000*(4.9051+6.6359+1.6590)= 39600 Option 4 is correct

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