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%9%)of the way through the Mixing process] 50,000 35.000 15,000 Costs Beginning WIP inventory Costs added during July: Chemical P Chemical Q 250,000 70,000 Direct Labour 32,000 Manufacturing overhead 103,000
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%9%)of the way through the Mixing process] 50,000 35.000 15,000 Costs Beginning WIP inventory Costs added during July: Chemical P Chemical Q 250,000 70,000 Direct Labour 32,000 Manufacturing overhead 103,000
Chapter1: Financial Statements And Business Decisions
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