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: Compute the equivalent units in the Mixing Department for direct materials and for conversion costs i) 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 Prepare the journal entry to record the cost of the units completed and transferred out to the Refining Department. iii) iv) Post the journal entries to the Work in Process Inventory - Mixing T-account. What is the ending balance?
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: Compute the equivalent units in the Mixing Department for direct materials and for conversion costs i) 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 Prepare the journal entry to record the cost of the units completed and transferred out to the Refining Department. iii) iv) Post the journal entries to the Work in Process Inventory - Mixing T-account. What is the ending balance?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Need answers for
iii) and iv)
show 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%2Fd70d27cf-918e-4f7a-a891-9eb313648b7e%2Fr396zq_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?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education