Champ Inc Manufactures a Product That Passes Through Two Processes: Mixing

Champ Inc. manufactures a product that passes through two processes: mixing and moulding. All manufacturing costs are added uniformly in the Mixing Department. Information for the Mixing Department for October follows:

$\begin{array}{llr}\text { Wark in pracess, Octaber 1 : } &\\\text { Units ( \( 35 \% \) complete) } &7,500\\ \text { Direct materials} &\$36,000\\ \text { Direct labour} &\$45,000\\ \text { Overhead } &\$15,000\end{array}$
During October,26,750 units were completed and transferred to the Moulding Department.The following costs were incurred by the Mixing Department during October:
$\begin{array}{lr}\text { Direct materials } & \$ 133,050 \\\text { Direct labour } & 180,000 \\\text { Overhead (applied) } & 45,000\end{array}$
-Refer to the figure.There were 2,500 units that were 80 percent complete remaining in Mixing at October 31.What is the amount of total costs to account for?

A) $360,000
B) $396,000
C) $454,050
D) $545,505

Correct Answer:

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