Question

Insetto Biological Manufacturing produces a pesticide chemical and uses process costing. There are three processing departmentslong dash​Mixing, ​Refining, and Packaging. On January​ 1, the first departmentlong dashMixinglong dashhad no beginning inventory. During​ January, 44 comma 000 fl. oz. of chemicals were started in production. Of​ these, 30 comma 000 fl. oz. were completed and 14 comma 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 weightedminusaverage method is used.
At the end of the month, Insetto calculated equivalent units. The ending inventory in the Mixing Department was 60% 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?A) Product completed: 31,000 equivalent units; Products in ending inventory: 5400 equivalent unitsB) Product completed: 31,000 equivalent units; Products in ending inventory: 9000 equivalent unitsC) Product completed: 40,000 equivalent units; Products in ending inventory: 5400 equivalent unitsD) Product completed: 40,000 equivalent units; Products in ending inventory: 9000 equivalent units

Answer 1

Answer:

Units completed= 38,400

Units in process= 5,600

Explanation:

Giving the following information:

Beginning inventory= 0

During​ January:

44,000 units started

30,000 completed

14,000 remained in the process

The ending inventory in the Mixing Department was 60% complete concerning conversion costs.

To calculate the equivalent units under the weighted average method, we need to use the following structure:

Weighted average:

Beginning inventory= 0

Units completed in the period= 30,000

Ending inventory WIP= 14,000*0.6= 8,400

Units completed= 38,400

Units in process= 5,600