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Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Need answer for
ii)
please provide working
![Question 2
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
Started production
| Completed and transferred to Refining Department
Ending work in process inventory [two-thirds (66%%)of the way through
the Mixing process]
50,000
35,000
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?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcf35951d-b484-46bb-ac46-25fb67c2f562%2Fe6229397-f44e-477a-b0ee-2f69feb5e541%2F6k9e52s_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 2
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
Started production
| Completed and transferred to Refining Department
Ending work in process inventory [two-thirds (66%%)of the way through
the Mixing process]
50,000
35,000
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?
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