Sigua Sugar, Inc. in Florida has six processing departments for refining sugar—Affination, 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:
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.
A) 10,700 EUP for direct materials and 3500 EUP for conversion costs
B) 12,200 EUP for direct materials and 10,700 EUP for conversion costs
C) 3500 EUP for direct materials and 10,700 EUP for conversion costs
D) 12,200 EUP for direct materials and 3500 EUP for conversion costs
B) 12,200 EUP for direct materials and 10,700 EUP for conversion costs
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