Kellogg Company manufactures cold cereal products, such as Frosted Flakes. Assume that the inventory in process...

 

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Kellogg Company manufactures cold cereal products, such as Frosted Flakes. Assume that the inventory in process on March 1 for the Packing Department included 900 pounds of cereal in the packing machine hopper (enough for 600 24-oz. boxes), and 600 empty 24-oz. boxes held in the package carousel of the packing machine. During March, 50,800 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 825 pounds of cereal, and the package carousel held 550 empty 24-oz. (1%-pound) 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. Kellogg Company manufactures cold cereal products, such as Frosted Flakes. Assume that the inventory in process on March 1 for the Packing Department included 900 pounds of cereal in the packing machine hopper (enough for 600 24-oz. boxes), and 600 empty 24-oz. boxes held in the package carousel of the packing machine. During March, 50,800 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 825 pounds of cereal, and the package carousel held 550 empty 24-oz. (1%-pound) 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.

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