Answer (D) is correct . This problem seemingly asks a technical question, but in reality was designed to test the candidate’s alertness. The equivalent units transferred from the molding department are simply the total units transferred from the molding department (42,000 units).
Answer (A) is incorrect because The number of units started and completed during the period was 30,000. Answer (B) is incorrect because The number of units transferred out, not to, the assembly department was 38,000. Answer (C) is incorrect because The equivalent units for conversion costs equals 40,800.
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