Reference no: EM133006520

The Opaskwayak Old-Fashioned Soda Companyr (OOFS) makes a line of old-fashioned sodas for sale in grocery stores. As an example of the manufacturing process, the Tonic Water ?avour goes through the following: All the direct materials except for the quinine and the carbonated water are mixed in the Mixing department to create the ?avouring syrup. The syrup then goes to the Carbonation department, where the carbonated water is added. At the end of this process, the quinine is added. Then, the product moves to the Canning department, where it is canned and boxed. Each box contains 24 cans, and each can contains 500 millilitres (or half a litre) of tonic water.

On June 1, 2,480,000 litres of tonic water were in work-in-process (WIP) in the Mixing department. These were 50% complete as to conversion costs. 100% of the direct materials are added at the beginning of the process in the Mixing department for all production. During June, 11,000,000 litres were started into the process.

On June 30, 2,200,000 litres were in WIP. The ending WIP was 25% complete as to conversion costs. When the product is 30% complete as to conversion costs, it is tested for quality to determine the spoilage. A normal spoilage rate for the Mixing department is 0.1% of good units that pass inspection. At the end of the month, there were 9,000 litres of spoiled product.

OOFS uses the ?rst in, ?rst out (FIFO) method of process costing.

Costs for the month of June for the Mixing department are as follows:

In opening WIP:

Direct material $62,397

Conversion costs $144,948

Costs added during the month of June:

Direct material $276,735

Conversion costs $1,236,544

Problem 1: Produce the process cost report for the month of June for the Mixing department for OOFS (do not round interim amounts). Determine the amount transferred to Carbonation.