Bartok Products, Inc., manufactures a chemical compound that goes through three processing stages prior to completion. Information on work in the first department, Mixing, is given below for September:
Homework Answers
Unit completed and transferred out = 67000+200000-27000 = 240000
Equivalent unit of material = 240000+(27000*75%) = 260250
Equivalent unit of conversion = 240000+(27000*25%) = 246750
Cost per equivalent unit of material = (78500+442000)/260250 = 2
Cost per equivalent unit of conversion = (20300+349825)/246750 = 1.5
Cost of unit completed and transferred out = 3.5*240000 = 840000
So answer is b) $840000
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