Cost of units transferred to the bottling department

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Reference no: EM131845894

Kipling Company operates a plant that reduces its own regionally marketed Super Salad Dressing. The dressing is produced in two processes: blending and bottling. In the Blending Department, all materials are added at the beginning of the process, and labor and overhead are incurred evenly throughout the process. Kipling uses the FIFO method The Work in Process -Blending Department account for January 2017 follows:

January Inventory: (4000 gallons, 75% finished) $40,000

Transferred to the Bottling department (70,000 gallons)

January charges

Direct Material: (71,000 gallons) 568,000

Direct labor: 64,000

Manufacturing Overhead: 186,000

January 31 inventory____________gallons (60% processed

a, Number of equivalent units in the January 31, inventory

b, Equivalent units for materials cost and conversion costs

c,January cost per equivalent units for materials and conversion costs

d,Cost of units transferred to the Bottling Department

e,Cost of incomplete units in the January 31 inventory

Reference no: EM131845894

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