Reference no: EM132576512

Company JOJO prepares and packages perfumes in bottles. The company has two departments: (1) Mixing and (2) Bottling. Direct materials are added at the beginning of the Mixing process (perfume concentrate) and at the end of the Bottling process (bottles). Conversion costs are added evenly throughout each process. Data from the current month for the Mixing Department are as follows:

Quantity during the current month:

Beginning work in process inventory................................................... 0

Started production................................................................................... 2,400 liters

Completed and transferred out to Bottling...................................... 1,800 liters

The ending work in process inventory is 60% of the way through the Mixing process.

Costs in the Mixing department during the month:

Beginning work in process inventory................................................... $ 0

Costs added:

Direct materials (perfume concentrate)............................................... $ 1,230

Direct labor............................................................................................... $ 540

Manufacturing overhead........................................................................ $ 1,120

Requirement:

Question 1. Calculate the quantity of work in process (WIP) inventory in the Mixing department, and analyze the conversion cost (after computing it). 

Question 2. Find and analyze the cost per liter out of the Mixing department?