Muses Manufacturing produces plastic toys and uses process costing.There are three processing departments-Assembling,Finishing,and Packaging.On January 1,the Finishing Department had 2,000 units of partially processed product in production.During January,31,000 units were transferred in from the Assembling Department and 30,000 units were completed and transferred out.At the end of the month,3,000 units of partially processed products remained in the Finishing Department.See additional details below. Finishing Department,ending balance at January 31
Percent completed for materials cost: $ 94 \% $
Percent completed for conversion cost: $ 70 \% $
What was the number of equivalent units for the month of January,with respect to direct materials,for the Finishing Department?
A) 32,820 units
B) 33,000 units
C) 30,000 units
D) 2,820 units

Question

Muses Manufacturing produces plastic toys and uses process costing.There are three processing departments-Assembling,Finishing,and Packaging.On January 1,the Finishing Department had 2,000 units of partially processed product in production.During January,31,000 units were transferred in from the Assembling Department and 30,000 units were completed and transferred out.At the end of the month,3,000 units of partially processed products remained in the Finishing Department.See additional details below. Finishing Department,ending balance at January 31
Percent completed for materials cost: $ 94 \% $ 
Percent completed for conversion cost: $ 70 \% $
 What was the number of equivalent units for the month of January,with respect to direct materials,for the Finishing Department?
A) 32,820 units
B) 33,000 units
C) 30,000 units
D) 2,820 units

Quizplus · Accepted Answer

The number of equivalent units for direct materials in the Finishing Department is calculated by adding the units completed and transferred out (30,000 units) to the equivalent units for the ending work in process inventory. The ending work in process inventory for materials is 3,000 units at 94% completion, which equals 2,820 equivalent units (3,000 units * 94%). Therefore, the total equivalent units for materials is 30,000 units + 2,820 units = 32,820 units.

Muses Manufacturing Produces Plastic Toys and Uses Process Costing 94% 94 \% 94%

Muses Manufacturing Produces Plastic Toys and Uses Process Costing $94 \%$