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The Franc Zeppo Venture manufactures a product that goes during two processing departments. Information relating to the activity in first department during April is provided below :
• Work in process, 1st April: 50,000 units (80% completed for materials and 60% completed for conversion.• Work in process, 30th April: 72,000 units (45% completed for materials and 75% completed for conversion.
The department started 380,000 units into production through the month and transferred 385,000 completed units to the next department.
Evaluate the equivalent units of production for the first department for April, consider the company uses the weighted-average method of accounting for costs and units.
Purpose a letter/memo to the company's CEO with specific recommendations regarding your budget.
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