Organic Sugar,Inc The Ending Work-In-Process Inventory Is 100% and 70% Complete with Packaging.Conversion

question 84

Multiple Choice

Organic Sugar,Inc.in Ohio has six processing departments for refining sugar-Affination,Carbonatation,Decolorization,Boiling,Recovery,and Packaging.Conversion costs are added evenly throughout each process.Data from the month of August for the Decolorization Department are as follows: $$\begin{array} { | l | r | } \hline & \text { Metric Tons } \\\hline \text { Beginning Work-in-Process Inventory } & 0 \\\hline \text { Transferred in production } & 13,000 \\\hline \text { Completed and transferred out to Boiling in } & \\\text { August } & 8,000 \\\hline \text { Ending Work-in-Process Inventory } & 5,000 \\\hline\end{array}$$ $$\begin{array} { | l | r | } \hline &{ \text { Costs } } \\\hline \text { Beginning Work-in-Process Inventory } & \$ 0 \\\hline \text { Costs added during August } & \\\hline \text { Direct materials } & 2,600,000 \\\hline \text { Direct labor } & 1,030,000 \\\hline \text { Manufacturing overhead } & \$ 00,000 \\\hline \text { Total costs added during August } & \$ 4,430,000 \\\hline\end{array}$$ The ending Work-in-Process Inventory is 100% and 70% complete with respect to direct materials and conversion costs,respectively.Compute the equivalent units of production (EUP) for direct materials and for conversion costs for the month of August.

• A) 11,500 EUP for direct materials and 3,500 EUP for conversion costs
• B) 13,000 EUP for direct materials and 11,500 EUP for conversion costs
• C) 3,500 EUP for direct materials and 11,500 EUP for conversion costs
• D) 13,000 EUP for direct materials and 3,500 EUP for conversion costs

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