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 Fabrication Department's equivalent units of production related to conversion costs for July?

Question

Quizplus · Accepted Answer

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 = 70 + 0.40 × 20 = 78

Kota Toy Corporation Manufactures Lizard Dolls in Two Departments, Molding