Case Study: Process Cost Accounting at CleanWave Detergents Ltd
Background:
CleanWave Detergents Ltd is a manufacturer of liquid detergents. The company operates on a continuous production basis using process costing to account for costs in its production departments. CleanWave has three main departments: Mixing, Bottling, and Packaging.
The company uses a weighted average method for its process costing and tracks direct materials, direct labor, and overheads separately. For the period under consideration, the following data are provided for the Mixing Department:
Beginning work in progress WIP: liters, complete for materials, complete for conversion costs labor and overheads
During the month, liters were started into production.
Ending WIP: liters, complete for materials, complete for conversion costs.
Total costs in the beginning WIP: Direct materials $; Conversion costs $
Costs added during the period: Direct materials $; Conversion costs $ What costs are typically included in the category of direct materials in the Mixing Department at CleanWave Detergents Ltd
