Reference no: EM133132917

Question - Vaasa Chemicals makes a product by way of two processes - Mixing & Refining. Its process costing system in the Mixing Department has two direct cost categories (Chemical P & Chemical Q) and one conversion costs pool. Chemical P is introduced at the start of the operations in the Mixing Department and Chemical Q is added when the product is three-fourths (75%) completed in the Mixing Department. The following information pertains to the Mixing department for July:

Units - Work in process inventory, July 1 0

Started production 50,000

Completed and transferred to Refining Department 35,000

Ending work in process inventory [two-thirds (66?%) of the way through the Mixing process] 15,000

Costs - Beginning WIP inventory $0

Costs added during July:

Chemical P 250,000

Chemical Q 70,000

Direct Labour 32,000

Manufacturing overhead 103,000

Required -

i) Compute the equivalent units in the Mixing Department for direct materials and for conversion costs

ii) Compute :

a) the cost of the units completed and transferred out to the Refining Department

b) the cost of work in process inventory as of July 31

iii) Prepare the journal entry to record the cost of the units completed and transferred out to the Refining Department.

iv) Post the journal entries to the Work in Process Inventory - Mixing T-account. What is the ending balance?