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Green House Inc. processes cleaning fluid used as a base for household cleaning products produced...

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Accounting

Green House Inc. processes cleaning fluid used as a base for household cleaning products produced by various distributors. Two departments are involved: Mixing and Heating. Data relating to litres of cleaning fluid processed in the Mixing Department during October are provided below:

Litres of Cleaning Fluid Percentage Completed*
Work in process, October 1 25,000 35%
Work in process, October 31 5,000 70%

*Labour and overhead only.

A total of 25,000 litres of cleaning fluid were started into processing during October. All materials are added at the beginning of processing in the Mixing Department.

Required:

Compute the equivalent units for October for the Mixing Department, assuming that the company uses the FIFO method of accounting for units.

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