Question

Alchemy Manufacturing produces a pesticide chemical 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, 56,000 fl. oz. of chemicals were started in production. Of these, 30,000 fl. oz. were completed and 26,000 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 throughout the process. The weighted-average method is used. At the end of the month, Alchemy calculated equivalent units. The ending inventory in the Mixing Department was 75% complete with respect to conversion costs. With respect to direct materials, what is the number of equivalent units in the ending inventory?

Answer 1

Answer:

Explanation:

Opening units  0

Started               56000

                        56000

Transffered        30000

Closing                26000

                             Production Table

Using Weighted Average Method

Cost Element   Complete   Closing WIP   Equivellant production units  

Material                30,000        26,000                      56,000  

Labour Cost             30,000        19,500                       49,500