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Kellogg Company (K) 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. boxes) 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 when a box is filled with cereal. On March 31, the packing machine hopper held 900 pounds of cereal, and the package carousel held 600 empty 24-oz. (-pound) boxes. Assume that once a box is filled with cereal, it is immediately transferred to the finished goods warehouse.
Required:
Determine the equivalent units of production for cereal, boxes, and conversion costs for March.
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Kellogg Company (K) manufactures cold cereal products, such as Frosted Flakes. Assume that the inven...
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