Zucchero 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 the month of August for the Recovery Department are as follows: $$\begin{array} { | l | r | }
\hline & { \text { Metric Tons } } \
\hline \text { Beginning Work-in-Process Inventory } & 0 \
\hline \text { Transferred in } & 22,000 \
\hline \text { Ending Work-in-Process Inventory } & 6000 \
\hline
\end{array}$$ $$\begin{array} { | l | r | }
\hline &{ \text { Costs } } \
\hline \text { Beginning Work-in-Process Inventory } & \$ 0 \
\hline \text { Costs added during August } &\
\hline \text { Direct materials } & 520,000 \
\hline \text { Direct labor } & 220,000\
\hline \text { Manufacturing overhead } & \underline { 125,000 }\
\hline \text { Total costs added during August } &\$ 865,000\
\hline
\end{array}$$
The ending Work-in-Process Inventory is 100% and 85% complete with respect to direct materials and conversion costs, respectively. The weighted-average method is used. How many metric tons of sugar were refined and transferred to the Packaging Department in August?

Question

Zucchero 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 the month of August for the Recovery Department are as follows: $$\begin{array} { | l | r | } 
\hline & { \text { Metric Tons } } \
\hline \text { Beginning Work-in-Process Inventory } & 0 \
\hline \text { Transferred in } & 22,000 \
\hline \text { Ending Work-in-Process Inventory } & 6000 \
\hline
\end{array}$$ $$\begin{array} { | l | r | } 
\hline &{ \text { Costs } } \
\hline \text { Beginning Work-in-Process Inventory } & \$ 0 \
\hline \text { Costs added during August } &\
\hline \text { Direct materials } & 520,000  \
\hline \text { Direct labor } &   220,000\
\hline \text { Manufacturing overhead } &  \underline { 125,000 }\
\hline \text { Total costs added during August } &\$ 865,000\
\hline
\end{array}$$
 The ending Work-in-Process Inventory is 100% and 85% complete with respect to direct materials and conversion costs, respectively. The weighted-average method is used. How many metric tons of sugar were refined and transferred to the Packaging Department in August?

Quizplus · Accepted Answer

To calculate the metric tons of sugar refined and transferred to the Packaging Department in August, we need to use the weighted-average method formula:

Units to Account for = Beginning WIP Inventory + Units Started into Production
Units Accounted for = Ending WIP Inventory + Units Transferred Out

Using the data provided in the question, we get:

Units to Account for: 
Beginning WIP Inventory: 2,000 metric tons (85% complete for conversion costs)
Units Started into Production: 20,000 metric tons
Total Units to Account for: 22,000 metric tons (100% complete for direct materials and conversion costs)

Units Accounted for: 
Ending WIP Inventory: 5,000 metric tons (100% complete for direct materials and 80% complete for conversion costs)
Units Transferred Out: X
Total Units Accounted for: 22,000 metric tons (100% complete for direct materials and conversion costs)

Using the weighted-average method formula, we can solve for X (units transferred out):

22,000 metric tons - 5,000 metric tons = X
X = 17,000 metric tons

Therefore, the metric tons of sugar refined and transferred to the Packaging Department in August is 17,000 metric tons, which is answer choice C.

Zucchero Sugar, Inc The Ending Work-In-Process Inventory Is 100% and 85% Complete with Carbonation