Star, Inc, Manufactures a Product That Passes Through Two Processes: Mixing

question 4

Essay

Star, 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 June follows: Work in progress, June 1 :
$\begin{array}{ll}\text { Units }(30 \% \text { complete) } & 15,000 \\\text { Direct materials } & £ 4,000 \\\text { Direct labour } & £ 3,000 \\\text { Overhead } & £ 2,376\end{array}$ During June, 100,000 units were completed and transferred to packaging.
The following costs were incurred by the mixing department during June: $\begin{array}{lr}\text { Direct materials } & £ 50,000 \\\text { Direct labour } & 30,000 \\\text { Overhead } & 12,000\end{array}$ At June 30, 8,000 units that were 70 per cent complete remained in the mixing department.
Use the weighted average method, and round unit costs to two decimal places.
a.Determine equivalent units of production for June.
b.Determine June's total costs to account for.
c.Determine total cost per equivalent unit of production.
d.Determine the cost of goods transferred to the packaging department.
e.Determine the cost of June's ending work in progress for the mixing department.

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Definitions:

Gland

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Growth Hormone

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Acromegaly

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Adrenalectomy

A surgical procedure to remove one or both adrenal glands, which are located above the kidneys.