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. 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

Question

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.  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

Quizplus · Accepted Answer

The units transferred from the Molding Department to the Assembly Department were 100% complete with respect to all of the costs and processing in the Molding Department.

Marlan Manufacturing Produces a Product That Passes Through Two Processing