Question 15 Kramer, Inc., manufactures a product that passes through two process

Question

Question 15 Kramer, Inc., manufactures a product that passes through two processes: mixing and molding. All manufacturing costs are added uniformly in the mixing department. Information for the mixing department for April follows: Work in process, April 1: Units (35% complete) 5,000 Direct materials $24,000 Direct labor $30,000 Overhead $10,000 During April, 25,000 units were completed and transferred to the molding department. The following costs were incurred by the mixing department during April: Direct materials $ 90,000 Direct labor 120,000 Overhead 30,000 By April 30, 2,500 units that were 80 percent complete remained in Mixing. Kramer uses the weighted average method. Kramer's total costs to account for would be Answer $304,000 $264,000 $240,000 $176,000

Explanation / Answer

Units completed 25,000
add: EWIP x % completed (2,500 x 80%) 2,000
Equivalent units 27,000

unit cost = [beg. cost (apr.1) + current costs (durrent apr)] / equivalent units

[(24,000 + 30,000 + 10,000) + (90,000 +120,000+30,000)] / 27,000 =$ 11.26 cheers...:)

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