Question

Shamrock, Inc. started the period with the following account balances: $116,400 Raw Materials Work in Process: Grinding Department Mixing Department Finishing Department Finished goods $25,000 $6,620 $10,700 $40,900 The following events occurred during the year: 1. Production of a new set of products began with a transfer of $59,100 worth of raw materials to the Grinding Department. 2. Conversion costs of $83,000 were incurred in the Grinding Department. 3. Products costing $149,300 were transferred from Grinding to the Mixing Department. 4. Materials costing $8,700 were added to the Mixing Department. 5. Conversion costs of $33,400 were incurred in the Mixing Department. 6. Products costing $176,100 were transferred from Mixing to the Finishing Department. 7. Conversion costs of $40,800 were incurred in the Finishing Department. 8. Products costing $205,900 were completed and transferred to the Finished Goods Inventory. 9. Products costing $231,100 were sold.

My question is the third picture.

Thank you

Answer 1

1)

WIP - Finishing Department process does not require any materials to be added.

Supporting explanation:

Materials are added only to the Grinding Department and Mixing Department because the initial manufacturing process of adding materials are happens in these two departments only but the WIP - Finishing department is the final department where the manufacturing process involving conversion are happens and then finished goods are transferred to Finishing department from WIP - Finishing Department.

2)

WIP - Finishing Department process appears to be the most expense.

Supporting explanation:

All process products from Grinding and Mixing Departments are transferred to WIP - Finishing Department and few more conversions costs are added in WIP - Finishing Department, hence, the total value of the products in WIP - Finishing Department are appears to be the most expense.

3)

Unit Cost = Total Production Cost / Number of Units Produced

= $205,900 / 10,600 units

= $19.42

Therefore, unit cost is $19.42.

Number of Units sold = Total product cost that was sold / Unit Product Cost

= $231,100 / $19.42 per unit

= 11,900 units

Therefore, 11,900 units sold.