Shampoo is manufactured in two departments:Mixing and Packing. Once the shampoo mixture
is completed in the Mixing Department, it is sent to Packaging,where a machine fills and seals individual
bottles, which are then passed to a machine that places the bottles in individual boxes.
The following information is related to production in March:
Beginning Work in Process
(Mixing: 100% material, 70% conversion costs) 16,100
(Packing: 50% material, 40% conversion costs) 10,000
Started during March: 700,000 675,100
Ending Work in Process
(Mixing: 100% material, 70% conversion costs) 41,000
(Packing: 80% material, 60% conversion costs) 30,000
Cost Information,Beginning Work in Process
Direct material $ 8,250 $ 940
Direct labor 1,270 70
Manufacturing overhead 2,590 100
Transferred-in cost — 3,800
Cost Added during March
Direct material $262,000 $ 87,000
Direct labor 78,600 10,000
Manufacturing overhead 128,500 20,000
Transferred-in cost — 457,130
Prepare production costs reports for Mixing and Packing for the month of March.
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