Felding Chemicals has a mixing department and a refining 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 data pertain to the mixing department for July 2013:

Units

Work in process, July 1 ............. 0

Units started .................53,500

Completed and transferred to refining department... 39,000

Costs

Chemical P ..................$ 374,500

Chemical Q.................. 117,000

Conversion costs ................249,375

Chemical P is introduced at the start of operations in the mixing department, and chemical Q is added when the product is 85% completed in the mixing department. Conversion costs are added evenly during the process. The ending work in process in the mixing department is 75% complete.

Required

1. Compute the equivalent units in the mixing department for July 2013 for each cost category.

2. What issues should the manager focus on when reviewing the equivalent units calculation?

3. 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, 2013.