1. Explain equivalent units. Why are equivalent-unit calculations necessary in process costing? 2. Merry Furniture Design has a cutting department and assembly department. Its process-costing system in the cutting department has two direct materials cost categories (woods and granite) and one conversion costs pool. The following data pertain to the cutting department for July 2021: Woods is introduced at the start of operations in the cutting department, and Granite is added when the product is three-fourths completed in the cutting department. Conversion costs are added evenly during the process. The ending work in process in the cutting department is two-thirds complete: a. Compute the equivalent units in the cutting department for July 2021 for each cost category. b. Compute (a) the cost of goods completed and transferred to the assembly department during July (b) the cost of work in process as of July 31,2021 . 1. Explain equivalent units. Why are equivalent-unit calculations necessary in process costing? 2. Merry Furniture Design has a cutting department and assembly department. Its process-costing system in the cutting department has two direct materials cost categories (woods and granite) and one conversion costs pool. The following data pertain to the cutting department for July 2021: Woods is introduced at the start of operations in the cutting department, and Granite is added when the product is three-fourths completed in the cutting department. Conversion costs are added evenly during the process. The ending work in process in the cutting department is two-thirds complete: a. Compute the equivalent units in the cutting department for July 2021 for each cost category. b. Compute (a) the cost of goods completed and transferred to the assembly department during July (b) the cost of work in process as of July 31,2021