Gravity Manufacturing produces a chemical pesticide and uses process costing

There are three processing departments-Mixing, Refining, and Packaging. On January 1, the first department-Mixing-had no beginning inventory. During January, 41,000 fl. oz. of chemicals were started in production. Of these, 32,000 fl. oz. were completed, and 9,000 fl. oz. remained in process. In the Mixing Department, all direct materials are added at the beginning of the production process, and conversion costs are applied evenly through the process. The weighted-average method is used.

At the end of January, the equivalent unit data for the Mixing Department were as follows:

WHOLE UNITS Equivalent Units Equivalent Units
Units accounted for Direct Materials Costs Conversion Costs
Completed and transferred 32,000 32,000 32,000
Ending work-in-process* 9,000 9,000 3,600
41,000 41,000 35,600
* Percent complete for conversion costs: 40%

In addition to the above, the costs per equivalent unit were $1.80 for direct materials and $5.25 for conversion costs. Using this data, calculate the cost of the units that were transferred out of the Mixing Department and into the Refining Department.
A) $168,000
B) $110,400
C) $225,600
D) $57,600

C .C)
Cost of units transferred Equivalent units Cost per EUP Total Cost
Direct materials 32,000 $1.80 $57,600
Conversion 32,000 5.25 168,000
Total costs $225,600