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: $ 75 \% $
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: $ 75 \% $
 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 total number of equivalent units of production for conversion costs is calculated by adding the units completed and transferred out (30,000 gallons) to the equivalent units for the ending work in process inventory based on the percentage completion for conversion costs (4,000 gallons * 75% = 3,000 units), resulting in 30,000 + 3,000 = 33,000 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 $\quad 94 \%$