Question

WSP Manufacturing produces a pesticide chemical and uses process costing. There are three processing departments​Mixing, ​Refining, and Packaging. On January​ 1, the first departmentMixinghad no beginning inventory. During​ January, fl. oz. of chemicals were started in production. Of​ these, fl. oz. were completed and 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 through the process. At the end of the​ month, WSP calculated equivalent units. The ending inventory in the Mixing Department was ​% complete with respect to conversion costs. With respect to conversion​ costs, how many equivalent units were calculated for the product that was completed and for ending​ inventory?

Answer 1

Answer:  Product completed: 32,000 equivalent units; Products in ending inventory: 4,800 equivalent units

Explanation:

The question notes that 32,000 fl. oz were completed and the conversion costs were applied evenly so the completed EUP is;

= 32,000 fl. oz.

The EUP for the closing inventory;

Units were 60% complete in respect to Conversion and there are 8,000 units in process.

= 8,000 * 60%

= ‭4,800‬ fl. oz