Cara,Incmanufactures a Product That Passes Through Two Processes: Mixing and Packaging.All

question 109

Essay

Cara,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 April follows: $\begin{array}{lr}\text { Work in process, April 1 } & \\\text { Units (60\% complete) } & 5,000 \\\text { Direct materials } & \$ 40,000 \\\text { Direct labour } & \$ 50,000 \\\text { Overhead } & \$ 5,000\end{array}$ During April,90,000 units were completed and transferred to packaging.
The following costs were incurred by the mixing department during April: $\begin{array}{lr}\text { Direct materials } & \$ 280,000 \\\text { Direct labour } & 190,000 \\\text { Overhead } & 75,000\end{array}$ At April 30,15,000 units that were 20% complete remained in the mixing department.
Use the weighted average method and round unit costs to two decimal places.
Required: A. Determine equivalent units of production for April.
B. Determine April'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 April's ending work in process for the mixing department.

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Definitions:

Trial Close

A sales technique where the salesperson asks the prospect a question or series of questions to gauge the prospect's readiness to buy.

Buyer's Readiness

The stages a potential customer goes through before deciding to purchase a product, including awareness, knowledge, liking, preference, conviction, and purchase.

Team Selling

A sales strategy where a group of individuals with different expertise collaborates to sell a product or service to better meet customer needs.

New-Customer Acquisition

The process of attracting and converting prospects into new customers for a business.