Sue's Soup Products uses a process costing system with two processing departments: the Mixing and Cooking Department and the Canning Department. Work in process inventories are reduced to zero each month. In March, the Mixing and Cooking Department incurred manufacturing costs of $43,200 to mix 36,000 gallons of soup. The Canning Department incurred manufacturing costs of $5,000. A total of 100,000 cans of soup were transferred to the finished goods warehouse during the month.   The unit cost per gallon of soup transferred to the Canning Department during March was:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Sue's Soup Products uses a process costing system with two processing departments: the Mixing and Cooking Department and the Canning Department. Work in process inventories are reduced to zero each month. In March, the Mixing and Cooking Department incurred manufacturing costs of $43,200 to mix 36,000 gallons of soup. The Canning Department incurred manufacturing costs of $5,000. A total of 100,000 cans of soup were transferred to the finished goods warehouse during the month.

 

The unit cost per gallon of soup transferred to the Canning Department during March was:

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