Question
Sigua Sugar, Inc. in Florida has six processing departments for refining sugarlong dashAffination, Carbonation, Decolorization, Boiling, Recovery, and Packaging. Conversion costs are added evenly throughout
Sigua Sugar, Inc. in Florida has six processing departments for refining
sugarlong dashAffination,
Carbonation, 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:
Metric Tons | |
Beginning Work-in-Process Inventory | 0 |
Transferred in production | 12,200 |
Completed and transferred out to Boiling in August | 7,200 |
Ending Work-in-Process Inventory | 5,000 |
Costs | |
Beginning Work-in-Process Inventory | $0 |
Costs added during August | |
Direct materials | 2,100,000 |
Direct labor | 1,030,000 |
Manufacturing overhead | 600,000 |
Total costs added during August | $3,730,000 |
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. The weighted-average method is used.
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