Question
Lays Potato Chips uses process costing to find the cost of making each case of chips. 5 million cases were started and finished during the
Lays Potato Chips uses process costing to find the cost of making each case of chips. 5 million cases were started and finished during the month. There was no WIP inventory at the beginning of the month, but at the end of the month, there were 100,000 cases still in production. For these 100,000 cases still in process, 95% of the DM had been added (potatoes, oil and salt, but not the packaging). These chips in ending WIP were only 60% of the way through the conversion process.
How many TOTAL Conversion Equivalent Units (Conversion EU) were there for the month?
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