Equivalent Units (CPA adapted) Poole, Inc., produces a chemical compound by a unique chemical process, which Poole has divided into two departments, A and B, for accounting purposes. The process functions as follows: 1. The formula for the chemical compound requires one pound of Chemical X and one pound of Chemical Y. In the simplest sense, one pound of Chemical X is processed in Department A and transferred to Department B for further processing where one pound ‘of Chemical Y is added when the process is 50 percent complete. When the processing is complete in Department B, the finished chemical compound is transferred to finished goods. ‘The process is continuous, operating twenty-four hours a day.

2. No spoilage occurs in Department B.
3. In Department A conversion costs are incurred uniformly throughout the process and are allocated to good pounds produced.
4. In Department B conversion costs are allocated equally to each equivalent pound of output.
5. Poole’s unit of measure for work-in-process and finished-goods inventories is pounds, 6. The following data are available for the month of October 19_4:
DEPARTMENT A DEPARTMENT B Work in process, October 1 8,000 pounds 10,000 pounds Stage of completion of beginning inventory (one batch per department) ws Ao Started or transferred in 47,500 pounds %
Transferred out 46,500 pounds 7 Work in process, October 31 te ?
Stage of completion of ending inventory (one batch per department) 3 Ys Total equivalent pounds of material Y added in Department B 44,500 pounds Prepare schedules computing equivalent pounds of production (materials and conversion costs) for Department A and for Department B for the month of October 19_4 using the first-in, first-out method for inventory costing. l-01