Question

The Mixing Department combines the direct materials of paraffin wax and pigments. The heated mixture is pumped to the Molding Department, where it is poured into molds. After the molds cool, the crayons are removed from the molds and are transferred to the Packaging Department, where paper wrappers are added and the crayons are boxed.In the Mixing Department, the direct materials are added at the beginning of the process and the conversion costs are incurred evenly throughout the process. Work in process of the Mixing Department on March 1, 2018, consisted of 200 batches of crayons that were 60% of the way through the production process. The beginning balance in Work-in-Process Inventory—Mixing was $29,400, which consisted of $13,000 in direct materials costs and $16,400 in conversion costs. During March, 4,800 batches were started in production. The Mixing Department transferred 2,600 batches to the Molding Department in March, and 2,400 were still in process on March 31. This ending inventory was 30% of the way through the mixing process. Creta Colors uses FIFO process costing.

Prepare a production cost report for the Mixing Department for March. Round equivalent unit of production costs to four decimal places. Round all other costs to the nearest whole dollar

- X 1 Data Table Work-in-Process Inventory—Mixing Balance, Mar. 1 29,400 Direct materials 52,800 Direct labor 19,850 Manufacturing overhead 31,350 Print Done

Answer 1

	Batches	Material	Conversion Costs
Units to account for
Beginning Work in process (a)	200
Units started (b)	4,800
Total Units to account for (a)+(b)	5,000
Units accounted for
Inventory in Process, Beginning (c)	200	-	80
Started and completed (d)	2,400	2,400	2,400
Units transferred (e) = (c)+(d)	2,600	2,400	2,480
Equivalent units in ending WIP (f)	2,400	2,400	720
Total units accounted for (e)+(f)	5,000
Equivalent units of production (g) = (e)+(f)		4,800	3,200
	Material	Conversion Costs
Cost added during the production (h)	$52,800.00	$51,200.00
Equivalent units of production (g)	$4,800.00	$3,200.00
Cost per Equivalent unit (i)=(h)/(g)	$11.00	$16.00
	Material	Conversion Costs	Total
Inventory in Process, Beginning (j)	$13,000.00	$16,400.00	$29,400.00
Costs incurred (h)	$52,800.00	$51,200.00	$104,000.00
Total Costs to be accounted for (j)+(h)			$133,400.00
Costs allocated:
Inventory in Process, Beginning (j)	$13,000.00	$16,400.00	$29,400.00
To completed beginning inventory (k)=(i)*(c)	$0.00	$1,280.00	$1,280.00
Total Cost of Work in Process (l)=(j)+(k)			$30,680.00
Started and completed (m)=(i)*(d)	$26,400.00	$38,400.00	$64,800.00
Transferred to Packing Department (n)=(l)+(m)			$95,480.00
Inventory in Process, Ending (o)=(i)*(f)	$26,400.00	$11,520.00	$37,920.00
Total Costs accounted for (n)+(o)			$133,400.00