Question

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:

The computation of the equivalent units related to material is shown below:

= Units completed  × percentage + ending work in process units × percentage

= 79,000 dolls × 100% + 7,000 dolls × 100%

= 79,000 dolls + 7,000 dolls

= 86,000 dolls

The equivalent units include completed & transferred units and ending units of work in process inventory