Cool Balm produces a lip balm used for cold-weather sports. The
balm is manufactured in a single processing department. No lip balm
was in process on May 31, and Cool Balm started production on
20,900 lip balm tubes during June. Direct materials are added at
the beginning of the process, but conversion costs are incurred
evenly throughout the process. Completed production for June
totaled 15,700 units. The June 30 work in process was 45% of the
way through the production process. Direct materials costing $
5,225 were placed in production during June, and direct labor of $
3,360 and manufacturing overhead of $ 248 were assigned to the
process.
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