Sodius Chemical Inc

question 3

Essay

Sodius Chemical Inc. placed 220,000 liters of direct materials into the mixing process. At the end of the month, 5,000 liters were still in process, 30% converted as to labor and factory overhead. All direct materials are placed in mixing at the beginning of the process and conversion costs occur evenly during the process. Sodius uses weighted-average costing.
Required:
a.Determine the equivalent units in process for direct materials and conversion costs, assuming there was no beginning inventory.
b.Determine the equivalent units in process for direct materials and conversion costs, assuming that 12,000 liters of chemicals were 40% complete prior to the addition of the 220,000 liters.

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Definitions:

Matrix Organization

A company structure where employees report to multiple managers, typically both a functional manager and a project manager.

Project Management

The application of knowledge, skills, tools, and techniques to project activities to meet project requirements efficiently and effectively.

Cost

The amount of money required for the production or acquisition of goods or services, or the expenditure incurred by a business or project.

Schedule

A detailed timeline for the execution of tasks or events, specifying start and end times or dates.