Roary Chemicals has a Mixing department and a Refining department. Its process-costing system in the Mixing department has two direct materials cost categories (Chemical P and Chemical Q) and one conversion costs pool. The following data pertain to the Mixing department for July 2012: 710 CHAPTER 17 Physical Units: Work in process, July 1……………. 0 Units started ………………. 50,000 Completed and transferred to Refining department…………….. 35,000 Costs: 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-quarters completed in the Mixing department. Conversion costs are added evenly during the process. The ending work in process in the Mixing department is two-thirds completed. REQUIRED 1. Compute the equivalent units in the Mixing department for July 2012 for each cost category. 2. Compute (a) the cost of goods completed and transferred to the Refining department during July and (b) the cost of work in process as of July 31, 2012.
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