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 number of equivalent units for vitamins and minerals 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 number of equivalent units for vitamins and minerals is:

Quizplus · Accepted Answer

To calculate the number of equivalent units for vitamins and minerals, we need to consider the units that are 70% complete.

We know that the 2,000 gallons left in ending WIP are 40% complete. Therefore, the equivalent units for flavoring would be:

10,000 gallons x 100% = 10,000 equivalent units for flavoring 
2,000 gallons x 40% = 800 equivalent units for flavoring

To calculate the equivalent units for vitamins and minerals, we need to consider the 70% complete units.

10,000 gallons x 70% = 7,000 equivalent units for vitamins and minerals 
2,000 gallons x 30% = 600 equivalent units for vitamins and minerals

Adding the equivalent units for vitamins and minerals, we get:

7,000 + 600 = 8,000 equivalent units for vitamins and minerals

Therefore, the answer is choice C (8,000).

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