Use the information below to answer the following questions:
Hannish Orchards, a juice manufacturer, uses a process that adds flavouring 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.
Costs incurred during the period were:

-The number of equivalent units for vitamins and minerals at Hannish Orchards is

Question

Use the information below to answer the following questions:
Hannish Orchards, a juice manufacturer, uses a process that adds flavouring 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.
Costs incurred during the period were:
 
-The number of equivalent units for vitamins and minerals at Hannish Orchards is

Quizplus · Accepted Answer

To calculate the equivalent units for vitamins and minerals, we need to consider the units that are complete and the units that are 70% complete. 
Units complete= 10,000 gallons 
Units 70% complete= (2,000 gallons) x (40% completion)= 800 gallons 
Total equivalent units= Units complete+ Units 70% complete= 10,000 gallons+ 800 gallons= 8,800 gallons 
Therefore, the correct answer is (C) 8,000 equivalent units.

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