Heartbreak Kid Company manufactures potato chips in a two- department process: Cutting and Frying. In the Cutting department 10,000 pounds were started in production and 8,400 pounds were completed and transferred to the Frying department, while 1,600 pounds were still in process. These pounds were only 75% complete as far as conversion costs. The equivalent units for conversion costs are:

Question

Quizplus · Accepted Answer

The equivalent units for conversion costs are calculated by adding the completed units (8,400) to the equivalent units of the work in process (1,600 pounds * 75% = 1,200). Therefore, 8,400 + 1,200 = 9,600 equivalent units.

Heartbreak Kid Company Manufactures Potato Chips in a Two- Department