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