Equivalent Units of Production Kellogg Company manufactures cold cereal products

Question

Equivalent Units of Production Kellogg Company manufactures cold cereal products, such as Frosted Flakes. Assume that the inventory 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, baxes), and 800 empty 24-oz, boxes held in the package carousel of the packing machine. During March, 65,400 boxes of 24-oz. cereal were packaged. Conversion costs are incurred packing machine hopper held 900 pounds of cereal, and the package carousel heid 600 empty 24-o.(-pound) boses, assume thet once box is filled with cereal, it is immediately transferred to the finished goods warehouse. Kellogg Company Previous Next

Explanation / Answer

Solution:

From the given data we need to find the equivalent units of production for cereal, Boxes, and Conversion costs for march.

K company

Equivalent units of production for Cereal, Boxes, and Conversion cost for march.

Above calculations are explained here:

Cereal (in pounds) Boxes (in boxes) Conversion cost (in boxes) Inventory in process, March 1 0 0 800 Started and completed in march 96,900 64,600 64,600 Transfered to finished goods in march 96,900 64,600 65,400 Inventory in process, march 31 900 600 0 Total 97,800 65,200 65,400

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