Effects 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 4,000 gallons of partially processed product in production.During January,30,000 gallons were transferred in from the Mixing Department,and 30,000 gallons were completed and transferred out.At the end of the month,4,000 gallons of partially processed product remained in the Refining Department.See additional details below. Refining Department,ending balance at January 31
Percent completed for materials cost: $\quad 94 \%$
Percent completed for conversion cost: $76 \%$ What was the total number of equivalent units of production for conversion costs for the month of January for the Refining Department?

Question

Effects 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 4,000 gallons of partially processed product in production.During January,30,000 gallons were transferred in from the Mixing Department,and 30,000 gallons were completed and transferred out.At the end of the month,4,000 gallons of partially processed product remained in the Refining Department.See additional details below. Refining Department,ending balance at January 31
Percent completed for materials cost: $\quad 94 \%$
 Percent completed for conversion cost: $76 \%$ What was the total number of equivalent units of production for conversion costs for the month of January for the Refining Department?

Quizplus · Accepted Answer

The equivalent units for conversion costs are calculated by adding the units completed and transferred out (30,000) to the equivalent units in ending inventory (4,000 gallons * 76% = 3,040). Thus, the total is 30,000 + 3,040 = 33,040 units.

Effects Manufacturing Produces a Pesticide Chemical and Uses Process Costing 94%\quad 94 \%94%

Effects Manufacturing Produces a Pesticide Chemical and Uses Process Costing $\quad 94 \%$