Vaasa Chemicals makes a product by way of two processes - Mixing & Refining. Its process costing system in the Mixing Department has two direct cost categories (Chemical P & Chemical Q) and one conversion costs pool. Chemical P is introduced at the start of the operations in the Mixing Department and Chemical Q is added when the product is three- fourths (75%) completed in the Mixing Department. The following information pertains to the Mixing department for July: Units Work in process inventory, July 1 Started production Completed and transferred to Refining Department Ending work in process inventory [two-thirds (66%%)of the way through the Mixing process] 50,000 35,000 15,000 Costs Beginning WIP inventory so Costs added during July: Chemical P 250,000 Chemical Q 70,000 Direct Labour 32,000 Manufacturing overhead 103.000 Required: Compute the equivalent units in the Mixing Department for direct materials and for conversion costs i) ii) Compute: a) the cost of the units completed and transferred out to the Refining Department b) the cost of work in process inventory as of July 31 Prepare the journal entry to record the cost of the units completed and transferred out to the Refining Department. iii)

Vaasa Chemicals makes a product by way of two processes - Mixing & Refining. Its process costing system in the Mixing Department has two direct cost categories (Chemical P & Chemical Q) and one conversion costs pool. Chemical P is introduced at the start of the operations in the Mixing Department and Chemical Q is added when the product is three- fourths (75%) completed in the Mixing Department. The following information pertains to the Mixing department for July: Units Work in process inventory, July 1 Started production Completed and transferred to Refining Department Ending work in process inventory [two-thirds (66%%)of the way through the Mixing process] 50,000 35,000 15,000 Costs Beginning WIP inventory so Costs added during July: Chemical P 250,000 Chemical Q 70,000 Direct Labour 32,000 Manufacturing overhead 103.000 Required: Compute the equivalent units in the Mixing Department for direct materials and for conversion costs i) ii) Compute: a) the cost of the units completed and transferred out to the Refining Department b) the cost of work in process inventory as of July 31 Prepare the journal entry to record the cost of the units completed and transferred out to the Refining Department. iii)

Name: Question 2Vaasa Chemicals makes a product by way of two processes Mix
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Description: Question 2Vaasa Chemicals makes a product by way of two processes Mixing & Refining. Its processcosting system in the Mixing Department has two direct cost categories (Chemical P &Chemical Q) and one conversion costs pool. Chemical P is introduced a

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 21E: The Converting Department of Tender Soft Tissue Company uses the weighted average method and had...

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Question 2Vaasa Chemicals makes a product by way of two processes – Mixing & Refining. Its processcosting system in the Mixing Department has two direct cost categories (Chemical P &Chemical Q) and one conversion costs pool. Chemical P is introduced at the start of theoperations in the Mixing Department and Chemical Q is added when the product is threefourths (75%) completed in the Mixing Department. The following information pertains to theMixing department for July: UnitsWork in process inventory, July 1 0Started production 50,000Completed and transferred to Refining Department 35,000Ending work in process inventory [two-thirds (66⅔%)of the way throughthe Mixing process] 15,000 CostsBeginning WIP inventory $0Costs added during July:Chemical P 250,000Chemical Q 70,000Direct Labour 32,000Manufacturing overhead 103,000Required:i) Compute the equivalent units in the Mixing Department for direct materials and forconversion costsii) Compute :a) the cost of the units completed and…
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