Question

XYZ manufactures 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 32,000 dolls in process. These dolls were 0% complete with respect to direct materials and 30% complete with respect to conversion cost. During January, Molding completed 600,000 dolls. On January 31, Molding had 50,000 dolls in work in process. These dolls were 0% complete with respect to direct materials and 40% complete with respect to conversion cost. How many dolls were started in the Molding Department during January

Answer 1

Answer:

XYZ Manufacturing Company

The units of dolls started in the Molding Department during January is:

= 618,000.

Explanation:

a) Data and Calculations:

                                                   Units          Materials     Conversion

Beginning work in process =   32,000 dolls        0%              30%

Completed in January           600,000 dolls     100%           100%

Ending work in process           50,000 dolls        0%             40%

Units started during January 618,000 dolls

= Dolls completed in January Plus Ending work in process Minus Beginning work in process

= 618,000 (600,000 + 50,000 - 32,000)