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?

Question

Khloe Burton

Business

29 November, 14:53

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?

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Answers (1)

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Victoria Carey · Answer 1

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