Question
Pizza Company produces frozen pizzas in three departments: assembly, freezing and packaging. In assembly, crust ingredients are added at the beginning of the process. After
Pizza Company produces frozen pizzas in three departments: assembly, freezing and packaging. In assembly, crust ingredients are added at the beginning of the process. After the crust is made, the sauce, cheese, and toppings are added at the end of the process. Conversion costs are added evenly. Data for the assembly department includes:
| Beginning WIP inventory | 0 units |
| Units started | 22,000 units |
| Units completed/transferred to freezing | 19,800 units |
| Ending WIP (70% through assembly) | 2,200 units |
| Crust ingredients added | $31,000 |
| Cheese added | $16,000 |
| Sauce and toppings added | $8,000 |
| Direct labour | $22,216 |
| Manufacturing overhead | $5,486 |
What are the total equivalent units for conversion costs?
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Finance Business Discover Types Of Audits Balance Sheets And Assertions
Authors: Carleen Legalley
1st Edition
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