Question

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?

Answer 1

Answer:

The Molding Department's equivalent units related to materials for January are 86,000.

Explanation:

Using Weighted-average method,

Equivalent units of production

= Units transferred to the next department or to finished goods + Equivalent units in ending work in process inventory

79,000 + 1.00 × 7,000 = 86,000.