1 Lubricants, Inc. produces a special kind of grease that is widely used by race car drivers. The grease in produced in two processes: refining and blending. Raw oil products (materials) are introduced at various points in the refining department conversion costs are incurred evenly throughout the refining operation. The refined output is then transferred to the blending department. The following information relates to March for the refining department: 2 3 4 4 Percentage Complete Conversion Units Materials Costs 25,000 100% 90% 401,000 ? 45,000 75% 25% 5 Work in process, March 1 Started in production Completed and transferred out Work in process, March 31 6 7 8 9 Conversion Materials Costs $30,500 $16,300 $516,970 $273,965 10 11 Work in process, March 1 Costs added during March 12 20 Required: 21 Part 1: Calculate the actual units in completed and transferred out in March. (3 marks) 22 3 Work in process, March 1 25,000 4 Costs added during March 401,000 5 5 Cost of units in work in process, March 31 Units completed and transferred out 29 Part 2: Calculate the following. (14 marks) 30 31 Equivalent units Conversion Materials Costs 32 3 Total costs Cost per equivalent unit Equivalent units of production 4 5 5 7 > Sheet1 Now OY ASUMMOBook Cost per equivalent unit Conversion Costs Materials Total Cost