Sunnyside Orchards, a juice manufacturer, uses a process that adds flavoring at the beginning of the process and vitamins and minerals 65% of the way through the process. Conversion costs are evenly distributed. Assume there are no beginning inventories. The company started making 18,000 gallons of the drink, and the 1900 gallons left in ending WIP were 20% of the way through the process. The equivalent units for flavoring is
A)18,000.
B)19,900.
C)16,480.
D)1900.

Question

Quizplus · Accepted Answer

Since flavoring is added at the beginning of the process, all 18,000 gallons started with flavoring. Therefore, the equivalent units for flavoring is also 18,000.

Sunnyside Orchards, a Juice Manufacturer, Uses a Process That Adds