Hannish Orchards,a juice manufacturer,uses a process that adds flavoring at the beginning of the process and vitamins and minerals 70% of the way through the process.Conversion costs are evenly distributed.Assume there are no beginning inventories.The company started making 10,000 gallons of the drink,and the 2,000 gallons left in ending WIP were 40% of the way through the process.
-The equivalent units for flavoring is:

Question

Hannish Orchards,a juice manufacturer,uses a process that adds flavoring at the beginning of the process and vitamins and minerals 70% of the way through the process.Conversion costs are evenly distributed.Assume there are no beginning inventories.The company started making 10,000 gallons of the drink,and the 2,000 gallons left in ending WIP were 40% of the way through the process. 
-The equivalent units for flavoring is:

Quizplus · Accepted Answer

Since the flavoring is added at the beginning of the process, all 10,000 gallons of the drink started with flavoring already added. Therefore, the equivalent units for flavoring is 10,000. The 2,000 gallons left in ending WIP were 40% of the way through the process, so the equivalent units for vitamins and minerals is 2,000 x 70% = 1,400. 
Total equivalent units = equivalent units for flavoring + equivalent units for vitamins and minerals = 10,000 + 1,400 = 11,400. 
Since there were no beginning inventories, the equivalent units for flavoring is the same as the total equivalent units, which is 10,000.

Hannish Orchards,a Juice Manufacturer,uses a Process That Adds Flavoring at the Beginning