Organic Sugar, Inc in Ohio has six processing departments for refining sugar—Affination, Carbonatation, 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:

Metric Tons
Beginning Work-in-Process Inventory 0
Transferred in production 12,200
Completed and transferred out to Boiling in August 7,200
Ending Work-in-Process Inventory 5,000

Costs
Beginning Work-in-Process Inventory $0
Costs added during August
Direct materials 2,100,000
Direct labor 1,030,000
Manufacturing overhead 600,000
Total costs added during August $3,730,000

The ending Work-in-Process Inventory is 100% and 70% 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.
A) 10,700 EUP for direct materials and 3,500 EUP for conversion costs
B) 12,200 EUP for direct materials and 10,700 EUP for conversion costs
C) 3,500 EUP for direct materials and 10,700 EUP for conversion costs
D) 12,200 EUP for direct materials and 3,500 EUP for conversion costs

B .B)
Whole
Units Percent Complete Equivalent
Units

Direct
Materials Percent Complete Conversion
Costs
Completed and transferred out 7,200 100% 7,200 100% 7,200
Ending WIP 5,000 100% 5,000 70% 3,500
Total units accounted for 12,200 12,200 10,700