A chemical company begins the period with 15,000 units in process, incurs $150,000 in direct materials costs, $200,000 in conversion costs, and completes 20,000 units during the period.

• Requirements:
  • Calculate the equivalent units of production for direct materials and conversion costs using the weighted average method.
  • Prepare a cost per equivalent unit schedule.
  • Allocate costs to units completed and ending work in process.
  • Discuss the benefits of process costing in the chemical industry.