Essay
Cara, Inc. manufactures a product that passes through two processes: mixing and packaging. All manufacturing costs are added uniformly in the mixing department.
Information for the mixing department for April follows:
Work-in-Process Inventory, April 1
Units (60% complete) 5,000
Direct materials $40,000
Direct labour $50,000
Overhead $ 5,000
During April, 90,000 units were completed and transferred to packaging.
The following costs were incurred by the mixing department during April:
Direct materials $280,000
Direct labour 190,000
Overhead 75,000
At April 30, 15,000 units that were 20% complete remained in the mixing department.
Use the weighted average costing method and round unit costs to two decimal places.
Required:
A. Determine equivalent units of production for April for the mixing department.
B. Determine April's total costs to account for in the mixing department.
C. Determine total cost per equivalent unit of production in the mixing department.
D. Determine the cost of goods transferred to the packaging department.
E. Determine the cost of April's ending Work-in-Process Inventory for the mixing department.
Correct Answer:

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A.
C. $6.88 (rounded) ($640,000/93,000...View Answer
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Correct Answer:
Verified
C. $6.88 (rounded) ($640,000/93,000...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
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