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H3Ko H3Ko
wrote...
Posts: 4891
7 years ago
Babson Sugar, Inc. has six processing departments for refining sugarAffination, Carbonation, Decolorization, Boiling, Recovery, and Packaging. Conversion costs are added evenly throughout each process. Data from August for the Decolorization Department are as follows:

   Metric Tons
Beginning Work-in-Process Inventory   0
Transferred in   12,500
Completed and transferred out to Boiling in August   8,000
Ending Work-in-Process Inventory   4,500

   Costs
Beginning Work-in-Process Inventory   $0
Costs added during August   
Direct materials   2,500,000
Direct labor   1,200,000
Manufacturing overhead   625,000
Total costs added during August   $4,325,000

The ending Work-in-Process Inventory is 100% and 75% complete with respect to direct materials and conversion costs, respectively. The weighted-average method is used. Compute the cost per equivalent unit for the units transferred to the Boiling process. (Round any intermediate calculations and your final answer to two decimal places.)
A) $360.44 per metric ton
B) $96.00 per metric ton
C) $150.00 per metric ton
D) $200.00 per metric ton
Textbook 
Horngren's Financial & Managerial Accounting, The Financial Chapters

Horngren's Financial & Managerial Accounting, The Financial Chapters


Edition: 5th
Authors:
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TanksTanks
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7 years ago
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H3Ko Author
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7 years ago
YES! Can't believe I got this one right. Appreciate the confirmation
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