WSP Manufacturing produces a pesticide chemical and uses process costing

There are three processing departments-Mixing, Refining, and Packaging. On January 1, the first department-Mixing-had no beginning inventory. During January, 40,000 fl. oz. of chemicals were started in production. Of these, 31,000 fl. oz. were completed and 9,000 fl. oz. remained in process. In the Mixing Department, all direct materials are added at the beginning of the production process, and conversion costs are applied evenly through the process.

At the end of the month, WSP calculated equivalent units. The ending inventory in the Mixing Department was 60% complete with respect to conversion costs. With respect to conversion costs, how many equivalent units were calculated for the product that was completed and for ending inventory?
A) Product completed: 31,000 equivalent units; Products in ending inventory: 5,400 equivalent units
B) Product completed: 31,000 equivalent units; Products in ending inventory: 9,000 equivalent units
C) Product completed: 40,000 equivalent units; Products in ending inventory: 5,400 equivalent units
D) Product completed: 40,000 equivalent units; Products in ending inventory: 9,000 equivalent units

A .A)
Whole
Units Percent Complete Direct
Materials Percent Complete Conversion
Costs
Completed and transferred out 31,000 100% 31,000 100% 31,000
Ending WIP 9,000 100% 9,000 60% 5,400
Total units accounted for 40,000 40,000 36,400