FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Cari Colors is a manufacturer of a specialized paint. All paint go through an identical
manufacturing process. Every effort is made to ensure that all paint are identical and meet
many demanding performance specifications. The product-costing system at the POS plant
has a single direct-cost category (direct materials) and a single indirect-cost category
(conversion costs). All paint passes through two departments –the Mixing Department and
the Testing Department. Direct materials are added to the beginning of the process in Mixing.
Conversion costs are added evenly throughout the two departments. When Mixing
Department finishes work on the paint, it is immediately transferred to Testing.
Cari Colors uses the Weighted-average method of
Department for October 2017 are.
Summarize the total Mixing Department costs for October 2017, and assign these
costs to units completed (and transferred out) and to units in ending work in process
using the Weighted-average method.
Transcribed Image Text:Physical Unit
Direct Materials Costs
Conversion Costs
(Paint)
Work in process, October 1*
20
$ 460,000
$ 120,000
Started during October 2017
80
Completed during October 2017
90
Work in process, October 31†
10
Costs added during October 2017
$ 2,000,000
$ 935,000
* Degree of completion: direct materials, ? % conversion costs, 60%.
† Degree of completion: direct materials, ? % conversion costs, 70%.
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