Finding assembly department for the current month


Problem:

Marlan Manufacturing produces a product that passes through two processing departments. The units from the Molding Department are completed in the Assembly Department. The activity in the Assembly Department for the current month is presented below. Marlan uses the FIFO method in its process costing system.

Units in beginning work in process inventory (materials 0%

 

complete; conversion 25% complete)

8,000

Units transferred in from the Molding Department during the

 

month

42,000

Units completed and transferred to finished goods

38,000

Units in ending work in process inventory (materials 0%

 

complete; conversion 40% complete)

12,000

The equivalent units (with respect to the Molding Department"s costs) transferred from the Molding Department to the Assembly during the month were:

A) 30,000 units

B) 38,000 units

C) 40,800 units

D) 42,000 units

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Accounting Basics: Finding assembly department for the current month
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