Carbamate Manufacturing produces a pesticide chemical and uses process costing. There are three processing departments-Mixing, Refining, and Packaging. On January 1, the Refining Department had 2000 gallons of partially processed product in production. During January, 30,000 gallons were transferred in from the Mixing Department, and 29,000 gallons were completed and transferred out. At the end of the month, 3000 gallons of partially processed product remained in the Refining Department. The weighted-average method is used. See additional details below. Refining Department, ending balance at January 31
l'ercent completed for materials cost: $\quad 92 \%$
Percent completed for conversion cost: $70 \%$ What was the total number of equivalent units of production for conversion costs for the month of January for the Refining Department?

Question

Quizplus · Accepted Answer

To calculate equivalent units of production (EUP) for conversion costs, we need to add the units transferred out to the EUP of partially completed units in ending inventory.

Units started and completed = 29,000 gallons 
Units in ending inventory = 3,000 gallons

To calculate EUP for conversion costs, we need to multiply the units completed and transferred out by 1 (since they are 100% complete), and the units in ending inventory by the percentage of completion.

EUP = (29,000 x 1) + (3,000 x 100%)
EUP = 29,000 + 3,000
EUP = 31,000

Therefore, the total number of equivalent units of production for conversion costs for the month of January for the Refining Department is 31,100 units.

Carbamate Manufacturing Produces a Pesticide Chemical and Uses Process Costing 92%\quad 92 \%92%

Carbamate Manufacturing Produces a Pesticide Chemical and Uses Process Costing $\quad 92 \%$