Pestiferous Manufacturing produces a chemical pesticide and uses process costing. There are three processing departments-Mixing, Refining, and Packaging. On January 1, the first department-Mixing-had no beginning inventory. During January, 45,000 fl. oz. of chemicals were started in production. Of these, 36,000 fl. oz. were completed, and 9,000 fl. oz. remained in process. In the Mixing Department, all direct materials are added at the beginning of the production process, and conversion costs are applied evenly throughout the process. At the end of January, the equivalent unit data for the Mixing Department were as follows: UNITS Units to be accounted for Completed and transferred out Ending work-in-process" 36,000 9.000 OA $32,040 OB. $11,250 OC. $56,250 OD. $39,960 Equivalent Units Direct Materials Costs 36,000 9,000 45,000 Equivalent Units Conversion Costs 36,000 3.960 39,960 45.000 Percent complete for conversion costs: 44% In addition to the above, the costs per equivalent unit were $1.25 for direct materials and $5.25 for conversion costs. Using this data, calculate the full cost of the ending WIP balance in the Mixing Department. The weighted-average method is used. C

Pestiferous Manufacturing produces a chemical pesticide and uses process costing. There are three processing departments-Mixing, Refining, and Packaging. On January 1, the first department-Mixing-had no beginning inventory. During January, 45,000 fl. oz. of chemicals were started in production. Of these, 36,000 fl. oz. were completed, and 9,000 fl. oz. remained in process. In the Mixing Department, all direct materials are added at the beginning of the production process, and conversion costs are applied evenly throughout the process. At the end of January, the equivalent unit data for the Mixing Department were as follows: UNITS Units to be accounted for Completed and transferred out Ending work-in-process" 36,000 9.000 OA $32,040 OB. $11,250 OC. $56,250 OD. $39,960 Equivalent Units Direct Materials Costs 36,000 9,000 45,000 Equivalent Units Conversion Costs 36,000 3.960 39,960 45.000 Percent complete for conversion costs: 44% In addition to the above, the costs per equivalent unit were $1.25 for direct materials and $5.25 for conversion costs. Using this data, calculate the full cost of the ending WIP balance in the Mixing Department. The weighted-average method is used. C

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Description: Pestiferous Manufacturing produces a chemical pesticide and uses process costing. There are three processing departments—Mixing, Refining, and Packaging. On January 1, the first department—Mixing—had no beginning inventory. During January, 45,000 fl

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Concept explainers

Process Costing

Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure. 

Job Costing

Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.

ABC Costing

Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.

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Pestiferous Manufacturing produces a chemical pesticide and uses process costing. There are three processing departments—Mixing, Refining, and Packaging. On January 1, the first department—Mixing—had no beginning inventory. During January, 45,000 fl. oz. of chemicals were started in production. Of these, 36,000 fl. oz. were completed, and 9,000 fl. oz. remained in process. In the Mixing Department, all direct materials are added at the beginning of the production process, and conversion costs are applied evenly throughout the process.

At the end of January, the equivalent unit data for the Mixing Department were as follows:

| UNITS | Equivalent Units Direct Materials Costs | Equivalent Units Conversion Costs |
|-----------------------------------------------|-----------------------------------------|----------------------------------|
| Units to be accounted for Completed and transferred out | 36,000 | 36,000 |
| Ending work – in-process* | 9,000 | 3,960 |
| Total | 45,000 | 39,960 |

*Percent complete for conversion costs: 44%

In addition to the above, the costs per equivalent unit were $1.25 for direct materials and $5.25 for conversion costs. Using this data, calculate the full cost of the ending WIP balance in the Mixing Department. The weighted-average method is used.

- **O A. $32,040**
- **O B. $11,250**
- **O C. $56,250**
- **O D. $39,960**

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