Question 16 20 pts Towson Company uses a process costing system to account for its production costs. Conversion cost is added evenly throughout the process. Direct materials are added at the beginning of the process. During October, the company transferred 280,000 units of product to finished goods. At the end of October, the work in process inventory consists of 15,000 units that are 40% complete with respect to conversion. Beginning inventory had $325,000 of direct material and $75,000 of conversion cost. The direct materials cost added in October was $1,750,000 and the conversion cost added in October was $525,000. Complete the requirements below. (a). What is the key calculation or amount to be determined in process costing? (b). Determine the equivalent units of production with respect to (a) direct materials and (b) conversion. The format below was used in class and homework, while you can't enter information into this chart it might be helpful in coming to the correct answers. Cells that have 'XXX' in them are not used. % complete EUP--Direct % complete EUP- Physical units for DM Materials for Conversion Conversion Units Completed & Transferred out Ending work in process-- units Total EUP XXXXXXXXX XXXXXXX XXXXXXXXX (c). Compute the total cost per equivalent unit. Hint: total cost will include DM and CC cost per unit, round amounts to two decimal places. (d.) Compute the total cost of units completed during the period. Hint--this is a factor of the number of units completed and the total cost per unit. (e). Calculate the cost of goods sold for the sale of 275,000 units (f). What product might Towson be manufacturing? There are a large number of correct answers here but you must think logically