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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