Question:
Kellogg Company manufactures cold cereal products, such as Frosted Fakes. Assume that the inventory in process on January 1 for the packing. Department included 750 pounds of cereal in the packing machine hopper, enough for 500 24-oz, boxes. In addition, there were 500 empty 24-oz, boxes held in the package carousel of the packing machine. During January, 41,500 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 960 pounds of cereal, and the package carousel held 640 empty 24-oz, (1 ?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 January. An equivalent units is defined as pounds for cereal and o24-oz, boxes for boxes and conversion costs If an amount is zero, enter in "0".