=+5-29 KK Zero beginning inventory, materials introduced in middle of process OBJECTIVE 8 Flare 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 2014:

Units Work in process, 1 July 0 Units started 45 000 Completed and transferred to Refining Department 40 000 Costs Chemical P $350 000 Chemical Q 187 425 Conversion costs 155 760 Chemical P is introduced at the start of operations in the Mixing Department and chemical Q is added when the product is threequarters completed in the Mixing Department. Conversion costs are added evenly during the process. The ending work in process in the Mixing Department is 85% complete.

1 Calculate the equivalent units in the Mixing Department for July 2014 for each cost category.

202 Chapter 5: Product and service costing M05_HORN3377_02_LT_C05.indd 202 2/09/13 3:24 PM