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Complete five-step procedure in first department
The Shannon Paint Company prepares and packages paint products. The company has two departments: (1) Blending and (2) Packaging. Direct materials are added at the beginning of the blending process (dyes) and at the end of the packaging process (cans). Conversion costs are added evenly throughout each process. Data from the month of May for the Blending Department are as follows:
Gallons:
Beginning work in process inventory
0
Started production
8,200 gallons
Completed and transferred out to Packaging in May
6,100 gallons
Ending work in process inventory (40% of the way through the blending process)
2,100 gallons
Costs:
mce_markernbsp; 0
Costs added during May:
Direct materials (dyes)
$5,166
Direct labor
600
Manufacturing overhead
1,829
Total costs added during May
$7,595
Requirements
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