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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
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: Beginning Work-in-Process Inventory 0 Transferred in production 11, 500 Completed and transferred out to Boiling in August 7,000 Ending Work-in-Process Inventory 4, 500 Beginning Work-in-Process Inventory existO Costs added during August Direct materials 2, 600,000 Direct labor 1, 130,000 A. 11, 500 EUP for direct materials and 2.925 EUP for conversion costs B. 2, 925 EUP for direct materials and 9, 925 EUP for conversion costs C. 9, 925 EUP for direct materials and 2, 925 EUP for conversion costs D. 11, 500 EUP for direct materials and 9, 925 EUP for conversion costs transferred in production 11, 500 Completed and transferred out to Boiling in August 7,000 Ending Work-in-Process Inventory 4, 500 Beginning Work-in-Process Inventory exist0 Costs added during August Direct materials 2, 600,000 Direct labor 1, 130,000 Manufacturing overhead 800,000 Total costs added during August exist4, 530,000 The ending Work-in-Process Inventory is 100% and 65% 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 2, 925 EUP for conversion costs B. 2, 925 EUP for direct materials and 9, 925 EUP for conversion costs C. 9, 925 EUP for direct materials and 2, 925 EUP for conversion costs D. 11, 500 EUP for direct materials and 9, 925 EUP for conversion costs
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