Azucar, Inc The Ending Work-In-Process Inventory Is 100% and 75% Complete with Decolorization

question 48

Multiple Choice

Azucar, Inc. has six processing departments for refining sugar-Affination, Carbonation, Decolorization, Boiling, Recovery, and Packaging. Conversion costs are added evenly throughout each process. Data from August for the Decolorization Department are as follows: $$\begin{array} { | l | r | } \hline & \text { Metric Tons } \\\hline \text { Beginning Work-in-Process Inventory } & 0 \\\hline \text { Transferred in } & 13,500 \\\hline \text { Completed and transferred out to Boiling in } & \\\text { August } & 5500 \\\hline \text { Ending Work-in-Process Inventory } & 8000 \\\hline\end{array}$$ $$\begin{array} { | l | r | } \hline & { \text { Costs } } \\\hline \text { Beginning Work-in-Process Inventory } & \$ 0 \\\hline \text { Costs added during August } & \\\hline \text { Direct materials } & 3,000,000 \\\hline \text { Direct labor } & 1,100,000 \\\hline \text { Manufacturing overhead } & \underline { 625,000 } \\\hline \text { Total costs added during August } & \$ 4,725,000 \\\hline\end{array}$$ The ending Work-in-Process Inventory is 100% and 75% complete with respect to direct materials and conversion costs, respectively. The weighted-average method is used. Compute the cost per equivalent unit for direct materials and conversion costs. (Round any intermediate calculations and your final answer to two decimal places.)

• A) $222.22 per metric ton for direct materials; $222.22 per metric ton for conversion costs
• B) $81.48 per metric ton for direct materials; $200.00 per metric ton for conversion costs
• C) $200.00 per metric ton for direct materials; $81.48 per metric ton for conversion costs
• D) $222.22 per metric ton for direct materials; $150.00 per metric ton for conversion costs

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