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 2,000 gallons of partially processed product in production. During January, 31,000 gallons were transferred in from the Mixing Department, and 29,000 gallons were completed and transferred out. At the end of the month, 4,000 gallons of the partially processed product remained in the Refining Department. See additional details below. Refining Department, ending balance at January 31 Percent completed for materials cost: 92% 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. 3,680 units b. 29,000 units c. 32,040 units d. 3,040 units

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter6: Process Costing
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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 2,000 gallons of
partially processed product in production. During January, 31,000 gallons
were transferred in from the Mixing Department, and 29,000 gallons were
completed and transferred out. At the end of the month, 4,000 gallons of
the partially processed product remained in the Refining Department. See
additional details below.
Refining Department, ending balance at January 31
Percent completed for materials cost: 92%
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. 3,680 units
b. 29,000 units
c. 32,040 units
d. 3,040 units
Transcribed Image Text: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 2,000 gallons of partially processed product in production. During January, 31,000 gallons were transferred in from the Mixing Department, and 29,000 gallons were completed and transferred out. At the end of the month, 4,000 gallons of the partially processed product remained in the Refining Department. See additional details below. Refining Department, ending balance at January 31 Percent completed for materials cost: 92% 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. 3,680 units b. 29,000 units c. 32,040 units d. 3,040 units
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