Computing unit cost for department and for completed units
with beginning inventory
U.S. Grant Company has two production departments. Blending
had 1,000 units in process at the beginning of the period, twofifths
complete. During the period 7,800 units were received from
Mixing, 8,200 units were transferred to Finished Goods, and 600
units were in process at the end of the period, 1/3 complete. The
cost of the beginning work in process was:
Cost in Mixing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,000
Cost in Blending:
Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200
Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500
Factory overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300
The costs during the month were:
Cost of goods received from Mixing . . . . . . . . . . . . . . . . . . . . . . . . $78,000
Cost in Blending:
Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,328
Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000
Factory overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,672
a. Determine the unit cost for the month in Blending.
b. Determine the total cost of the products transferred to
finished goods.
c. Determine the total cost of the ending work in process
inventory.