LDR manufacturing produces a pesticide chemical and uses process costing. There are three processing departments - Mixing, Refining, and Packaging. On January 1, 2012, the first department , Mixing, had a zero beginning balance. During January, 40000 liters of chemicals were started into production. During the month, 32,000 liters were completed, and 8000 remained in process, partially completed. In the mixing department, all raw materials are added at the beginning of the production process, and conversion costs are applied evenly through the process. At the end of January, the equivalent unit data for the Mixing Department were as follows:
equivalent units | transferred in
units to account for
completed 32000 | 0
end bal WIP 8000 | 0
40000| 0
equivalent units
Direct Mtls Cost | conversion cost
32000 | 32000
8000 | 4800
40000 | 36800
In addition to the above, the costs per equivalent unit were $1.20 for direct materials and $5.75 for conversion costs. Using this data, please calculate the full cost of the units that were transferred out of the Mixing Department and into the Refining Department.
a) $222400
b) $48000
c) $37200
d) $211600