Equivalent Units of Production

Wheatmore Company manufactures cold cereal products. Assume that the inventory in process on January 1 for the Packing Department included 1,140 pounds of cereal in the packing machine hopper, enough for 760 24-oz. boxes. In addition, there were 760 empty 24-oz. boxes held in the package carousel of the packing machine.

During January, 63,080 boxes of 24-oz. cereal were packaged. Conversion costs are incurred when a box is filled with cereal. On January 31, the packing machine hopper held 1,470 pounds of cereal, and the package carousel held 980 empty 24-oz. (1-pound) boxes. Assume that once a box is filled with cereal, it is immediately transferred to the finished goods warehouse.

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Determine the equivalent units of production for cereal, boxes, and conversion costs for January. 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 "0".

Wheatmore Company
Equivalent Units of Production for Cereal, Boxes, and Conversion Cost
For January
		Cereal (in pounds)		Boxes (in boxes)		Conversion Cost (in boxes)
Inventory in process, January 1
Started and completed in January
Transferred to finished goods in January
Inventory in process, January 31
Total