Ralph, Inc. manufactures a product that passes through twoprocesses: mixing and molding. All manufacturing costs are addeduniformly inthe Mixing Department (i.e., same completion percentageapplies to materials and conversion costs). Information for theMixing Department forJanuary follows:

Work in process, January 1:

Units (35% complete) 7,500

Direct materials   $36,000

Direct labor   $45,000

Overhead (applied)   $15,000

During January, 26,750 units were completed and transferred tothe Molding Department. The following costs were incurred by theMixingDepartment during January:

Direct materials   $133,050

Direct labor   180,000

Overhead (applied)   45,000

At January 31, there were 3,750 units that were 80% completeremaining in Mixing Department.

Calculate the cost of January’s ending work in process for theMixing Department using the FIFO method.


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