Question

EX 17-9 Equivalent units of production Obj. 2 Kellogg Company manufactures cold cereal products, such as Frosted FIARE the inventory in process on March 1 for the I Scold cereal products, such as Frosted Flakes. Assume that o in process on March 1 for the Packing Department included 1,200 pounds of cereal in the packing machine hopper (enough for 800 24-oz. boxes) an boxes held in the package carousel of the packing er enough for 800 24-oz. boxes) and 800 empty 24-oz. a Package carousel of the packing machine. During March, 65,400 boxes of were packaged. Conversion costs are incurred when a box is filled with cereal. On March 31, the packing machine hopper held s the packing machine hopper held 900 pounds of cereal, and the package carousel held 000 empty 24-oz. (11-pound) boxes. Assume that once a box is filled with cereal, it is immediately transferred to the finished goods warehouse. (Continued)

Answer 1

Solutions from the given data we need to find the equivalent units of production for cereal Boxes and conversion costs for marchi Kellogg company Equivalent units of production and conversion costs for marchis for cereal boxes, Cereal (in pounds) Boxes( in boxed conversion, I cost (in boxes). 1200x0% =0 800x0% =0 800 x 100% Inventory in process march a. Slasted and completed (65400X1.5-1200 (65400-600X100% (65400–800 / 100% in march 96900 = 64600 = 64600 Transfered to hrashed goods armarch of 96900 =96900 O+64600 = 64600 800 + 64600 = 65oo Roiventory process in march 900 x 100% =900 600 X 100% = 600 Total 96900+goo = 97800 64600+600 = 65200 65u00 to = 65400 T