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Hello! I have several questions, 1. Does one gallon mean one unit? 2. I'm having trouble understanding process costing basics, especially in the "Total work done" section or also known as "Step 2" in process costing. Materials are 100% and conversion costs were 30% done. I don't quite understand the sum at the end and what does in mean, and why the numbers are twice reflected. if both cost were 112,00 does it mean 112,000 as a whole? as in 112,000(MC) = 112,000(CC) ---> 100% completion and should be considered to be transferred out? or 112,000 + 112,000? 3. Is there a simpler way to define Equivalent units? I'm g=having trouble understanding the definition. 4. The 112,000 at the end of step two should reflect the Gallons accounted for or the Units accounted for? (In the case MC and CC were both 100%) Would appreciate the feedback! Will rate!

Exhibit 8.4 Shredding Department, March, Year 2: Physical Flow of Resources A B Gallons of Pulp D 1 2 3 20,000 92,000 Work in process, March 1 + Gallons of pulp started Total gallons to account for 4 5 112,000 6 7 = Transferred out to Pressing Department + Work in process, March 31 Total units accounted for 96,000 16,000b 8 9 112,000 10 Exhibit 8.5 Shredding Department, March, Year 2: Equivalent Units A B D E 1 Equivalent Units 2 Physical Materials Conversion 3 Units 4 Transferred out 96,000 96,000 96,000 5 Work in process, March 31 16,0004 16,000 4,800 6 Total work 112.000 100.800 7

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