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Fynjy0 [20]
2 years ago
10

Class time. Process Costing C50 points) Our company manufactures Chemical X. Assume the company uses weighted average. Separate

direct materials and conversion costs. Chemical X is comprised of two liquids, Liquid A and Liquid B. The formula of Chemical X is 60% Liquid 40% Liquid B. 75% of the mixed liquid is added at the beginning of the process, 25% is added at the very end. This month, Liquid A costs $50 per gallon. Liquid B costs $30 per gallon. At the beginning of the month, there was 1,000 gallons in process, 75% through the process. The total costs in beginning WIP is $31,500 for materials and $20,975 for conversion costs. During the month, 10,000 gallons were started) Conversion costs were $343,000 for the month. Compute direct material costs (hint use DM EUP under FIFO). At the end of the month, there were 1,500 gallons in process, 70% through the AND ompleted) Completed?
Business
1 answer:
sineoko [7]2 years ago
8 0

Answer:

completed units = 9,500 gallons

Explanation:

gallons completed = beginning WIP inventory + units started during the month - ending WIP inventory = 1,000 gallons + 10,000 gallons - 1,500 = 9,500 gallons finished

units started and completed = total units started -ending WIP = 10,000 gallons - 1,500 gallons = 8,500 gallons

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