Babson 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 August for the Decolorization Department are as follows:

Metric Tons
Beginning Work-in-Process Inventory 0
Transferred in 12,500
Completed and transferred out to Boiling in August 8,000
Ending Work-in-Process Inventory 4,500

Costs
Beginning Work-in-Process Inventory $0
Costs added during August
Direct materials 2,500,000
Direct labor 1,200,000
Manufacturing overhead 625,000
Total costs added during August $4,325,000

The ending Work-in-Process Inventory is 100% and 75% complete with respect to direct materials and conversion costs, respectively. The weighted-average method is used. Compute the cost per equivalent unit for the units transferred to the Boiling process. (Round any intermediate calculations and your final answer to two decimal places.)
A) $200.00 per metric ton
B) $96.00 per metric ton
C) $150.00 per metric ton
D) $360.44 per metric ton

D .D)
Whole
Units Equivalent
Units

Direct
Materials Percent Complete Conversion
Costs
Units to account for:
Beginning WIP 0
Started in production 12,500
Total units to account for 12,500
Units accounted for:
Completed and transferred out 8,000 100% 8,000 100% 8,000
Ending WIP inventory 4,500 100% 4,500 75% 3,375
Total units accounted for 12,500 12,500 11,375

Direct
Materials Conversion
Costs incurred $2,500,000 $1,825,000
Total equivalent units 12,500 11,375
Cost per equivalent unit $200.00 $160.44
Total cost per equivalent unit =
($200.00 + $160.44 ) =
$360.44