Question
Sloan, Inc. began its business manufacturing hot sauce this month and uses process costing. In the Mixing Department, direct materials are added at the beginning
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Sloan, Inc. began its business manufacturing hot sauce this month and uses process costing. In the Mixing Department, direct materials are added at the beginning of the process, and conversion costs are added evenly throughout the process. Of the 40,000 ounces of hot sauce started in the Mixing Department this month, 9,000 ounces remained in WIP at the end of the month, 60% complete for conversion costs (CC). The rest were completed and transferred out to the Bottling Department. How many equivalent units for conversion costs were assigned to the units transferred out and to the units in ending inventory?
A. Transferred out = 31,000 EU for CC; WIP EB = 9,000 EU for CC
B. Transferred out = 40,000 EU for CC; WIP EB = 9,000 EU for CC
C. Transferred out = 31,000 EU for CC; WIP EB = 5,400 EU for CC
D. Transferred out = 40,000 EU for CC; WIP EB = 5,400 EU for CC
Sloan, Inc. began its business manufacturing hot sauce this month and uses process costing. In the Mixing Department, direct materials are added at the beginning of the process, and conversion costs are added evenly throughout the process. Of the 40,000 ounces of hot sauce started in the Mixing Department this month, 9,000 ounces remained in WIP at the end of the month, 60% complete for conversion costs (CC). The rest were completed and transferred out to the Bottling Department. How many equivalent units for conversion costs were assigned to the units transferred out and to the units in ending inventory?
| A. | Transferred out = 31,000 EU for CC; WIP EB = 9,000 EU for CC | |
| B. | Transferred out = 40,000 EU for CC; WIP EB = 9,000 EU for CC | |
| C. | Transferred out = 31,000 EU for CC; WIP EB = 5,400 EU for CC | |
| D. | Transferred out = 40,000 EU for CC; WIP EB = 5,400 EU for CC |
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