Question

Prize Mustard uses a process costing system with two departments: (a) a Mixing Department, and (b) a Bottling Department. During May, Prize generated $120,000 in revenue by producing 40,000 gallons (10,000 cases) of mustard. The company reduces its work in process inventories to zero each month. Manufacturing costs for May are as follows: Mixing Bottling Department Department Direct materials........ $16,000 $6,000 Direct labor... $5,600 $3,900 Manufacturing overhead........ $11,400 $8,100 1 Refer to the above data. The unit cost per gaiſon of mustard processed by the Mixing Department in May was $_ Refer to the above data. The unit cost per case of mustard incurred by the Bottling Department in May was $ 3 Refer to the above data. The total cost of the 10,000 cases transferred to finished goods in May was $ Refer to the above data. Assume that 9,500 cases of mustard were sold in May. The amount charged to cost of goods sold in May $

Answer 1

1) 3) Mixing Dept. $16,000 $5,600 $11,400 $33,000 40,000 $0.825 ($33000 / 40000 gallons] Direct materials Direct labor Manufacturing overhead Total manufacturing costs incurred in Mixing Dept. Gallons of mustard processed Unit cost per gallon of mustard processed in Mixing Dept. Total manufacturing costs incurred in Mixing Dept. $33,000 (Ref: Part-1] Total manufacturing costs incurred in Bottling Dept. $18,000 (Ref: Part-2] Total cost of 10000 cases transferred to finished goods $51,000 ($33000 + $18000] 4) Total cost of 10000 cases transferred to finished goods Number of cases of mustard sold Amount charged to cost of goods sold in May $51,000 [Ref: Part-3] 9,500 $48,450 [($51000 / 10000) x 9500 cases] Direct materials Direct labor Manufacturing overhead Total manufacturing costs incurred in Bottling Dept. Cases of mustard processed Unit cost per case of mustard processed in Bottling Dept. Bottling Dept. $6,000 $3,900 $8,100 $18,000 10,000 $1.800 ($18000 / 10000 cases]