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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

  1. 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 12,200 ounces of hot sauce started in the Mixing Department this month, 5,000 ounces remained in WIP at the end of the month, 70% complete for conversion costs (CC). The rest were completed and transferred out to the Bottling Department. Compute the total equivalent units for direct materials and for conversion costs during the month.

    A.

    3,500 EU for DM and 10,700 EU for CC

    B.

    12,200 EU for DM and 10,700 EU for CC

    C.

    12,200 EU for DM and 3,500 EU for CC

    D.

    10,700 EU for DM and 3,500 EU for CC

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