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Thank you! Barbara Karloff Inc. recently set up as a microbrewery to manufacture a variety of beers, ales and stouts to customer specifications. The standard

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Barbara Karloff Inc. recently set up as a microbrewery to manufacture a variety of beers, ales and stouts to customer specifications. The standard sizes per batch are as follows: stout, 5,000 gallons; ale, 8,000 gallons; and beer, 10,000 gallons. A beer batch takes six days to process, ale ten days and stout 14 days, the difference primarily attributable to the number of steps in the brewing process and the amount of time needed to mature the brew to the intended flavor specifications. By tradition, a new batch is started at 7 a.m., the start of a work day. It costs $1,800 in labor and variable overhead to set up each batch. The brewery's monthly fixed overhead is $220,000, which is allocated to products based on gallons. Other costing data appears below. Per gallon of output Basic direct materials Variable conversion costs Beer $0.40 $0.80 Bottle $0.05 Ale $0.60 $1.00 Label $0.03 Stout $ 0.90 $ 1.20 Case/Crate/Pack $ 0.25 Other direct materials Basic direct materials are applied at the start of the process. Direct materials costs are charged when used in production and variable conversion costs are applied evenly throughout the production process. There are 128 fluid Ounces in a gallon and all products are sold in 12-ounce bottles. Beer is sold with 24 bottles per case, but ale is packed by the dozen in mini-crates, and stout in 6-packs. In April, the first month of operations, BKI finished five batches of beer, three of ale and one of stout. Dribbles of liquids from one batch that do not completely fill a bottle are poured away. Bottles from a batch that do not make up a complete case, crate or pack are donated to the company monthly picnic. In reviewing the production records, you find that a batch of stout was started on the 23rd, a batch of ale on the 27th, and a batch of beer on the 29th These batches constitute ending work in process (EWIP). Which is true as far as equivalent units of output are concerned? (Do not round your intermediate calculations.) Multiple Choice 53,333 gallons of beer are complete with respect to materials 1,280,000 fluid Ounces of ale and 8,888 packs of stout were completed 24.000 gallons of ale have been completed with respect to conversion costs 7,857 gallons of stout have been completed with respect to conversion costs None of the choices are correct

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