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Question - Chavez Concrete Inc. has two production departments. Blending had 1,000 units in process at the beginning of the period, two-fifths complete. During the period 7,800 units were received form Mixing, 8,200 units were transferred to the finished goods storeroom, 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
Materials $3,328
Labor: $10,000
Factory Overhead: $6,672
Required -
a. Determine the total cost of the products transferred to finished goods.
b. Determine the total cost of the ending work in process inventory in Blending.
Accounting standards related to your company or a specialized accounting dilemma, where would you look for authoritative guidance? What databases are available?
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