Abbott Ltd produces a chemical used to clean showers in a single process in the Production Department. Raw materials in the form of chemicals are added at the beginning of the process, and a litre container is added at the end. The conversion costs (direct labour and factory overhead) are incurred uniformly throughout the process. The following cost and production data are available for the month of October 2016.

Beginning work in process inventory: Units Cost of chemicals added Cost of containers added Conversion costs added October operating data: Units started Units finished Cost of chemicals added Cost of containers added Conversion costs

30 000 litres $24 000 — $9 000 600000 litres 580 000 $480 000 $87 000 $723 000

The ending work in process inventory was 60% complete as to conversion costs.

Required

A. Determine equivalent units for both raw materials and conversion costs.

B. Prepare a cost of production report for the October 2016 production.