The Assembly Department of Zoom Auto Parts Began June with 15,000

question 139

Essay

The Assembly Department of Zoom Auto Parts began June with 15,000 partially complete units in beginning work in process inventory. The beginning work in process inventory balance of $71,762 consisted of $31,286 of direct materials and $40,476 of conversion costs. During the month, production that cost $288,000 (direct materials,$115,500, and conversion costs, $172,500) was started on 48,000 units. Zoom completed and transferred to the Testing Department a total of 54,000 units. The ending work in process inventory was 45% complete as to direct materials and 80% complete as to conversion costs. Zoom Auto Parts uses the weighted-average method for process costing.
Required:
A. Compute the equivalent units for direct materials and conversion costs.
B. Compute the cost per equivalent unit.

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Definitions:

Company

An organized entity formed to conduct business activities, selling goods or services in exchange for profit.

Last Year's Margin

Represents the difference between the sales revenue and the cost of goods sold from the previous year, often expressed as a percentage of sales.

Combined ROI

A metric that aggregates the return on investment from multiple projects or business units into a single figure.

Investment Opportunity

A situation where funds can be placed in a venture with the expectation of earning a return on the investment.