Question

The Thirsty Co. manufacutres a soft drink that goes through two proesses: Mixing and bottling. All manufacturing costs are added through the mixing departments.
Information for the mixing department in July is
WIP
Units (55% complete)	6000
Direct Materials	35000
Direct Labour	42000
Overhead	12000
During July, 32000 units are finished and sent to bottling
Costs incurred at mixing Dept.
Direct Materials	120000
Diract Labour	160000
Overhead	50000
End of July 3000 units 75% done are in mixing.
Thirsty Co. Us Weight Average Costing
Cost of Goods transferred to Bottling During July

Answer 1

					EUP		EUP
Equivalent unit			units	% materails	Materials	% CC	CC
completed & transferred			32,000	100%	32,000	100%	32,000
Ending work in process			3,000	100%	3,000	75%	2250
			35,000		35,000		34,250
unit cost				Materials	CC
Beginning work in process				35,000	54,000
cost added				120,000	210000
total cost				155,000	264,000
equivalent units				35,000	34,250
cost per unit				4.428571	7.708029	12.1366
cost of goods transferred to bottling
32,000*12.1366
388371	answer
( answer may differ slightly due to rounding)