QUESTION III. 20 MARKS

The Chang Manufacturing Company makes wood-finishing stain and uses the FIFO method of process costing for its stain manufacturing activity. The production of stain begins with the blending of various chemicals and ends with the canning of the stain. Canning occurs when the mixture reaches the 90% stage of completion. After canning, the cans are transferred to the shipping department. Here the cans are crated and shipped to various customers. Conversion costs are added uniformly throughout the process. The following are the actual production data for the canning department for April:

April Production Costs

Work in Process, April 1:

Direct materials- chemicals $ 72,000

Direct labour 18,000

Applied overhead 5,000

Costs added in April:

Direct materials-chemicals $336,000

Direct materials- cans 10,000

Direct labour 425,500

Applied overhead 115,000

Units for April:

Work in process inventory, April 1 (25% complete) 8,000 litres

Transferred to shipping department during April 40,000 litres

Started during April 42,000 litres

Work in process inventory, April 30 (80% complete) 10,000 litres

Question is: Compute the equivalent units in April for each of materials-cans, material-chemicals and conversion costs I don't know how the conversion Cost for Beginning WIP = 6000.?