Question

Equivalent Units of Production Wheatmore Company manufactures cold cereal products, such as Frosted Flakes. Assume that the inventory in process on March 1 for the Packing Department included 690 pounds of cereal in the packing machine hopper, (enough for 460 24-oz. boxes) and 460 empty 24-oz. boxes held in the package carousel of the packing machine. During March, 38,180 boxes of 24-oz. cereal were packaged. Conversion costs are incurred when a box is filled with cereal. On March 31, the packing machine hopper held 900 pounds of cereal and the package carousel held 600 empty 24-oz. (112-1b.) boxes. Assume that once a box is filled with cereal, it is immediately transferred to the finished goods warehouse. Determine the equivalent units of production for cereal, boxes, and conversion costs for March. An equivalent unit is defined as "pounds" for cereal and "24-oz. boxes" for boxes and conversion costs. If an amount is zero, enter in "O". Wheatmore Company Equivalent Units of Production for Cereal, Boxes, and Conversion Cost For March Cereal Boxes Conversion Cost (in pounds) (in boxes) (in boxes) Inventory in process, March 1 690 X 460 X 4607 Started and completed in March 56,580 37,720 37,720 Transferred to finished goods in March 57,270 X 38,180 X 38,180 Inventory in process, March 31 900 600 Total 58,170 X 38,780 Feedback Check My Work Remember that in order for units to be transferred to finished goods they have to be complete with respect to materials and conversion. Also recall the definition of work in process.

Answer 1

	Cereal	Boxes	Conversion cost
Inventory in process	0	0	460
Started and Completed	56580	37720	37720
Transferred to finished goods	56580	37720	38180
Inventory in process March 31	900	600	0
Total	57480	38320	38180

Materials are added at the beginning hence opening WIP equivalent units is zero