The Assembly Department of Zedco Ltd

question 118

Essay

The Assembly Department of Zedco Ltd. had 25,000 partially completed units in work in process at the end of August. Only 60% of the direct materials had been added to these units, and the units were 75% of the way through the conversion process. In addition, 400,000 units had been completed and transferred out of the Baking Department to the Packaging Department during the month.
Required:
A. What are the total equivalent units for direct materials?
B. At the end of the year, what are the equivalent units for conversion costs?

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Definitions:

Interest Income

Income earned from the lending of funds or depositing funds in interest-bearing accounts.

Eligible Dividends

Eligible dividends are those that are designated by corporations in certain countries to qualify for preferential tax treatment by the recipients.

Tax Paid

The amount of money that has been handed over to governmental entities as required by tax laws, based on earnings, sales, property values, etc.

Marginal Tax Rates

The rate at which the last dollar of income is taxed, reflecting the percentage of tax applied to your next dollar of taxable income.