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: 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?
A) 3,040 units
B) 33,040 units
C) 30,000 units
D) 3,760 units
B .B)
Whole
Units Percent
Complete Direct
Materials Percent
Complete Conversion
Costs
Completed and
transferred out 30,000 100% 30,000 100% 30,000
Ending
WIP 4,000 94% 3,760 76% 3,040
Total units
accounted for 34,000 33,760 33,040
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