The Assembly Department of Zoom Auto Parts Began April with No

question 69

Essay

The Assembly Department of Zoom Auto Parts began April with no work in process inventory. During the month, production that cost $71,345 (direct materials, $27,825, and conversion costs, $43,520) was started on 52,000 units. Zoom completed and transferred to the Testing Department a total of 43,000 units. The ending work in process inventory was 37.5% complete as to direct materials and 80% complete as to conversion costs.
Required:
A. Compute the equivalent units for direct materials and conversion costs.
B. Compute the cost per equivalent unit.

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Definitions:

Usage of Trade

Customary practices and standards within a particular industry or market that are considered legally binding in commercial transactions.

Exclusive Remedy

A sole solution or legal recourse available to a party under a contract in the event of a breach, often limiting other forms of legal action.

Remedies Agreed Upon

Refers to solutions or compensations for breach of contract that both parties have consented to in advance.

Essential Purpose

The fundamental intent or main objective behind a legal document or agreement.