5-29 Zero beginning inventory, materials introduced in middle of process

Flare Chemicals has a Mixing Department and a Refining Department. Its process-costing system in the Mixing Department has two direct materials cost categories (chemical P and chemical Q) and one conversion-costs pool. The following data pertain to the Mixing Department for July 2014:

Units

Work in process, 1 July 0

Units started 45000

Completed and transferred to Refining Department 40000

Costs

Chemical P $350 000

Chemical Q 187 425

Conversion costs 155 760

Chemical P is introduced at the start of operations in the Mixing Department and chemical Q is added when the product is threequarters completed in the Mixing Department. Conversion costs are added evenly during the process. The ending work in process in the Mixing Department is 85% complete.

1) Calculate the equivalent units in the Mixing Department for July 2014 for each cost category.

2)Calculate: (a) the cost of goods completed and transferred to the Refining Department during July and (b) the cost of work in process as of 31 July 2014.