Sigua Sugar, Inc. in Florida has six processing departments for refining sugar-Affination, Carbonation, Decolorization, Boiling, Recovery, and Packaging. Conversion costs are added evenly throughou each process. Data from the month of August for the Decolorization Department are as follows: Beginning Work-in-Process Inventory Transferred in production Completed and transferred out to Bolling in August Ending Work-in - Process Inventory Beginning Work-in-Process Inventory Costs added during August Direct materials Direct labor Manufacturing overhead Total costs added during August Metric Tons 0 11,400 7,400 4,000 OA 11,400 EUP for direct materials and 2,400 EUP for conversion costs OB. 9,800 EUP for direct materials and 2,400 EUP for conversion costs OC. 11,400 EUP for direct materials and 9,800 EUP for conversion costs OD. 2.400 EUP for direct materials and 9,800 EUP for conversion costs Costs 50 2,500,000 1,160,000 600,000 $4,200,000 The ending Work-in-Process Inventory is 100% and 60% 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.
Sigua Sugar, Inc. in Florida has six processing departments for refining sugar-Affination, Carbonation, Decolorization, Boiling, Recovery, and Packaging. Conversion costs are added evenly throughou each process. Data from the month of August for the Decolorization Department are as follows: Beginning Work-in-Process Inventory Transferred in production Completed and transferred out to Bolling in August Ending Work-in - Process Inventory Beginning Work-in-Process Inventory Costs added during August Direct materials Direct labor Manufacturing overhead Total costs added during August Metric Tons 0 11,400 7,400 4,000 OA 11,400 EUP for direct materials and 2,400 EUP for conversion costs OB. 9,800 EUP for direct materials and 2,400 EUP for conversion costs OC. 11,400 EUP for direct materials and 9,800 EUP for conversion costs OD. 2.400 EUP for direct materials and 9,800 EUP for conversion costs Costs 50 2,500,000 1,160,000 600,000 $4,200,000 The ending Work-in-Process Inventory is 100% and 60% 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.
Chapter1: Financial Statements And Business Decisions
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Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Transcribed Image Text: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:
Beginning Work-in-Process Inventory
Transferred in production
Completed and transferred out to Bolling in August
Ending Work-in-Process Inventory
Beginning Work-in-Process Inventory
Costs added during August
Direct materials
Direct labor
Manufacturing overhead
Total costs added during August
Metric Tons
0
11,400
7,400
4,000
OA 11,400 EUP for direct materials and 2,400 EUP for conversion costs
OB. 9,800 EUP for direct materials and 2,400 EUP for conversion costs
OC. 11,400 EUP for direct materials and 9,800 EUP for conversion costs
OD. 2,400 EUP for direct materials and 9,800 EUP for conversion costs
Costs
$0
2,500,000
1,160,000
600,000
$4,260,000
The ending Work-in-Process Inventory is 100% and 60% 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.
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