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.What is the cost of October's ending work in process for the Mixing Department using the FIFO method?

A) $26,250
B) $50,400
C) $63,000
D) $49,500

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free