Superior Chemical Company Refines a Variety of Petrochemical Products Required:
Compute the Equivalent Units of Direct Materials and Conversion

Superior Chemical Company refines a variety of petrochemical products. The following data pertain to the firm's Cincinnati plant:
$\begin{array} { l l } \text { Work in process, August 1: } & 100,000 \text { gallons } \\\text { Direct material } & 100 \% \text { complete } \\\text { Conversion } & 25 \% \text { complete } \\\text { Units started into production } & 1,375,000 \text { gallons } \\\text { Work in process, August 31: } & 120,000 \text { gallons } \\\text { Direct material } & 100 \% \text { complete } \\\text { Conversion } & 80 \% \text { complete }\end{array}$ Required:
Compute the equivalent units of direct materials and conversion for August.