II. Process Costing (50 points

Our company manufactures Chemical X. Assume the company uses weighted average. Separate direct materials and conversion costs.

Chemical X is comprised of two liquids, Liquid A and Liquid B. The formula of Chemical X is 60% Liquid A, 40% Liquid B. 70% of the mixed liquid is added at the beginning of the process; 30% added at the very end.

The average cost of the raw materials is $35 per gallon.

At the beginning of the month, there was 1,500 gallons in process, 40% through the process (as to conversion costs). The total costs in beginning WIP is $36,750 for materials and $97,440 for conversion costs.

During the month, 15,000 gallons were started. Conversion costs were $455,400 for the month. Compute direct material costs (hint use DM EUP under FIFO).

At the end of the month, there were 1,200 gallons in process, 80% through the process.

Answer each question separately. DO NOT just complete a table - this will result in a zero!

g. Using WA, calculate equivalent units of production.

h. Using WA, what is the cost per equivalent unit of production.

i. Using WA, what is journal entry for transferred to finished goods?

j. Using WA, what is the cost per unit?