gilbert inc which uses a process costing system makes a chemical used as a food pres 542853

Work in Process Inventory Accounts in Process Costing Systems

Gilbert, Inc., which uses a process costing system, makes a chemical used as a food preservative. The manufacturing process involves Departments A and B. The company had the following total costs and unit costs for completed production last month, when it manufactured 10,000 pounds of the chemical. Neither Department A nor Department B had any beginning or ending work in process inventories.

1. How many Work in Process Inventory accounts would Gilbert use?

2. What dollar amount of the chemical’s production cost was transferred from Department A to Department B last month?

3. What dollar amount was transferred from Department B to the Finished Goods Inventory account?

4. What dollar amount is useful in determining a selling price for 1 pound of the chemical?