The Clarke Chemical Company produces a special kind of body oil that is widely used by professional sports trainers. The oil is produced in three processes: Refining, Blending, and Mixing. Raw oil materials are introduced at the beginning of the refining process. A "mountain-air scent" material is added in the blending process when processing is 50% completed.
The Clarke Chemical Company produces a special kind of body oil that is widely used by professional sports trainers. The oil is produced in three processes: Refining, Blending, and Mixing. Raw oil materials are introduced at the beginning of the refining process. A "mountain-air scent" material is added in the blending process when processing is 50% completed.
The following Work-in-Process account for the Refining Department is available for the month of July. The July 1 Work-in-Process Inventory contains $1,500 in material costs.
Part 2: Blending Department
(e) Compute the equivalent units of production.
(f) Compute the unit costs in the Blending Department for the month of July. (HINT: There are three!!)
(g) Compute the costs transferred out for July.
(h) Compute the July 31 Work-in-Process Inventory balance.
![Work-in-Process: Refining
Beginning balance (5,000 gal, 80% complete)
Materials (30,000 gal.)
$6,500
12,300
Direct labor
14,500
Overhead
21,750
Ending balance (6,000 gal., 2/3 complete)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F083cfb46-6781-4d3e-88af-78643c56dd01%2F0b48f0c5-ec2c-40f1-b9bf-9ed8541b7243%2F8wro4oa_processed.png&w=3840&q=75)
![Work-in-Process: Blending
Beginning balance (8,000 gal, 30% complete)
Costs transferred in from Refining
$22,850
???
Materials
Direct labor (725 hours)
20,810
5,748
Overhead
11,600
Ending balance (4,000 gal., 40% complete)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F083cfb46-6781-4d3e-88af-78643c56dd01%2F0b48f0c5-ec2c-40f1-b9bf-9ed8541b7243%2Ff6qruzr_processed.png&w=3840&q=75)
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