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

question 163

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: $$\begin{array} { | l | r | } \hline & \text { Metric Tons } \\\hline \text { Beginning Work-in-Process Inventory } & 0 \\\hline \text { Transferred in } & 13,500 \\\hline \text { Completed and transferred out to Boiling in } & \\\text { August } & 5500 \\\hline \text { Ending Work-in-Process Inventory } & \mathbf { 8 0 0 0 } \\\hline\end{array}$$ $$\begin{array} { | l | r | } \hline & { \text { Costs } } \\\hline \text { Beginning Work-in-Process Inventory } & \$ 0 \\\hline \text { Costs added during August } & \\\hline \text { Direct materials } & 3,000,000 \\\hline \text { Direct labor } & 1,100,000 \\\hline \text { Manufacturing overhead } & \underline { 625,000 } \\\hline \text { Total costs added during August } & \$ 4,725,000 \\\hline\end{array}$$ 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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Definitions:

Hierarchy of Needs

A motivational theory proposed by Abraham Maslow, outlining five levels of human needs, from basic (physiological) to higher-level (self-actualization), driving behavior to fulfill these needs.

ERG Theory

A motivation theory developed by Clayton Alderfer that categorizes human needs into three categories: Existence, Relatedness, and Growth, modifying Maslow's hierarchy of needs.

Needs Hierarchy Theory

A psychological theory proposing that human needs are arranged in a hierarchy, with basic needs being the most fundamental.

Perceptions of Fairness

Individual judgments about the appropriateness, justness, and equity of an action or decision, often relating to treatment by others.