Question

1) Kota Toy Corporation manufactures lizard dolls in two departments, Molding and Assembly. In the Molding Department, plastic is injected into a lizard-shaped mold. The dolls that come out of the molds are then transferred to the Assembly Department where hair is applied. Kota uses a weighted-average process cost system to collect costs in both departments. On January 1, the Molding Department had 4,000 dolls in process. These dolls were 100% complete with respect to direct materials and 70% complete with respect to conversion cost. During January, Molding completed 79,000 dolls. On January 31, Molding had 7,000 dolls in work in process. These dolls were 100% complete with respect to direct materials and 25% complete with respect to conversion cost. What are the Molding Department's equivalent units related to materials for January? A) 79,000 B) 86,000 C) 89,000 D) 93,000

Answer 1

Answer:

B) 86,000

Explanation:

Londing equivalent units related to materials:

the company used Weighted average.

beginning inventory 4,000

completed units 79,000

ending inventory 7,000 100% in regards to materials

As the company used W-A we do no distinction between started and complete and completed.

We will calcualte equivalent units as:

Units completed this period + Units in Ending Work in Process

so: 79,000 x 7,000 x 100% = 86,000