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Dairymaid makes yogurt. The only ingredients, milk and bacteria cultures are added at the very beginning....

Dairymaid makes yogurt. The only ingredients, milk and bacteria cultures are added at the very beginning. At month end, Dairymaid has 100,000 cups of yogurt that are 25% of the way through the fermentation process. Use the equivalent unit formula to answer the follwing:

a. How many equivalent units of direct materials are in ending work in process?

b. How many equivalent units of conversion costs are in ending work in process?

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Answer #1

Requirement (a). Equivalent units of direct materials in ending work in process

Equivalent Units of Direct Material in ending Work in Process =100,000 cups of Yogurt. Since, the materials are added at the very beginning of process and therefore equivalents units will be equal to 100% of the Units of Direct Material

Requirement(b). Equivalent units of conversion costs in ending work in process

Equivalent units of conversion costs in ending work in process

= 100,000 cups of Yogurt x 25%

= 25,000

25,000 Equivalent units of conversion costs in ending work in process .

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