The Zakchari Company has six processing departments for refining sugar—Affinatio

Question

The Zakchari Company has six processing departments for refining sugar—Affination, Carbonation, Decolorization, Boiling, Recovery, and Packaging. Conversion costs are added evenly throughout each process, and materials are added at the beginning of each process. Data from August for the Recovery Department are as follows: ? Metric Tons Beginning Work-in-Process Inventory 3,000 Transferred In 18,500 Ending Work-in-Process Inventory 6,500 In August, 15,000 metric tons were completed and sent to the Packaging Department. The ending Work-in-Process Inventory was 50% complete with respect to conversion costs. Prepare a production cost report for the Recovery Department to show the equivalent units for direct materials and conversion costs. The weighted-average method is used.

Explanation / Answer

Prepare a production cost report for the Recovery Department to show the equivalent units for direct materials and conversion costs. The weighted-average method is used.

Whole unit % EUP-material % EUP-conversion cost Units completed and transferre out 15000 100% 15000 100% 15000 Ending work in process 6500 100% 6500 50% 3250 Total 21500 21500 18250

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