Exhibit 4-2
Chem Company Makes Chemicals and Uses the Weighted

Multiple Choice

Exhibit 4-2
Chem Company makes chemicals and uses the weighted average process costing method.The company has two processing departments - Mixing and Packaging.They had no beginning inventories for April and the percentages of completion were 50% for direct materials,direct labor,and overhead.
$\begin{array}{lrc} & \underline{\text { Mixing } }& \underline{\text { Packaging }} \\ \text { Gallons of chemical completed during April }& 90,000 & 90,000 \\\text { Gallons of chemical on hand at April 30 (50\% complete) } & 8,000 & 0 \\\text { Production costs incurred } & \$ 47,000 & \$ 153,000\end{array}$

-Refer to Exhibit 4-2.What is the cost per gallon for the packaging process?

A) $1.66
B) $1.78
C) $1.70
D) $1.56
E) None of the answer choices is correct.