Answered Essay: Chemicals has a mixing department and a refining department. Its​ process-costing system in the mixing department has two direct mater

Chemicals has a mixing department and a refining department. Its​ process-costing system in the mixing department has two direct materials cost categories​ (chemical P and chemical​ Q) and one conversion costs pool. The following data pertain to the mixing department for July

2014​:

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​(Click the icon to view the mixing department​ data.)

Chemical P is introduced at the start of operations in the mixing​ department, and chemical Q is added when the product is

80 %

completed in the mixing department. Conversion costs are added evenly during the process. The ending work in process in the mixing department is

75%

complete.

Requirements

1. Compute the equivalent units in the mixing department for July2014

for each cost category.

2. Compute​ (a) the cost of goods completed and transferred to the refining department during July and​ (b) the cost of work in process as of July​ 31,2014.

Requirement 1. Compute the equivalent units in the mixing department for July

2014

for each cost category

Units
Work in process, July 1 0
Units started 53,500
Completed and transferred to refining department 39,000
Costs
Chemical P $321,000
Chemical Q 156,000
Converstion costs 149,625

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