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Southwest Sugar, Inc. has six processing departments for refining sugarlong dash

ID: 2338426 • Letter: S

Question

Southwest Sugar, Inc. has six processing departments for refining

sugarlong dash—Affination,

Carbonation, Decolorization, Boiling, Recovery, and Packaging. Conversion costs are added evenly throughout each process. Data from the month of August for the Recovery Department are as follows:.

The ending

WorkminusinminusProcess

Inventory is

100%

and

95%

complete with respect to direct materials and conversion costs, respectively. The

weightedminusaverage

method is used. How many metric tons of sugar were refined and transferred to the Packaging Department in August?

Metric Tons Beginning Work - in - Process Inventory Started in production Ending Work-in Process Inventory 22,000 5,000 Costs $0 Beginning Work - in - Process Inventory Costs added during August Direct materials Direct labor Manufacturing overhead Total costs added during August 520,000 230,000 115,000 $865,000 OA. 17,000 metric tons O B. 27,000 metric tons ° C. 5,000 metric tons O D. 22,000 metric tons

Explanation / Answer

The correct answer = Option 'A' 17,000 metric tonnes.

Units transferred to Packaging Department = Beginning units + Units started - Ending units of WIP

= 0 + 22000 - 5000

= 17,000 units = Option 'A"

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