Question

Story Manufacturing produces a chemical pesticide and uses process costing. There are three processing departmentslong dash?Mixing, ?Refining, and Packaging. On January? 1, the first departmentlong dashMixinglong dashhad a zero beginning balance. During? January, 42,000 gallons of chemicals were started into production. During the? month, 33,000 gallons were? completed, and? 9,000 remained in? process, partially completed. In the Mixing? Department, all direct materials are added at the beginning of the production? process, and conversion costs are applied evenly through the process. During? January, the Mixing Department incurred? $60,000 in direct materials costs and? $250,000 in conversion costs. At the end of the? month, the ending inventory in the Mixing Department was? 60% complete with respect to conversion costs.? First, calculate the equivalent? units, then calculate the cost per equivalent? unit, and then calculate the total cost of the product that was completed and transferred out during January. The? weighted-average method is used. The total cost of product transferred out was? ________.

Answer 1