Reference no: EM133117407

Question - Vaasa Chemicals has a Mixing Department and a Re?ning Department. Its process-costing system in the Mixing Department has two direct material cost categories (Chemical P and Chemical Q) and one conversion costs pool. The following pertain to the Mixing Department for July 20xx:

Units:

Work in process, July 1 0

Units started 50,000

Completed and transferred to Refining Department 35,000

Costs added during the period: (For both units transferred out and in ending Inventory)

Chemical P $250,000

Chemical Q 70,000

Conversion costs 135,000

Chemical P is introduced at the start of operations in the Mixing Department, and chemical Q is added when the product is three-fourths completed (regarding conversion costs) in the Mixing Department. Conversion costs are added evenly during the process. The ending work in process in the Mixing Department is two-thirds complete (regarding conversion costs).

Required -

1. Compute the equivalent units in the Mixing Department for July 20xx for each cost category.

2. Compute the cost of goods completed and transferred to the Refining Department during July

3. Compute the cost of ending work in process as of July 31, 20xx.