Marlan Manufacturing produces a product that passes through two departments. The units from the molding department are completed in the assembly department. The units are completed in assembly by adding the remaining direct materials when the units are 60% complete with respect to conversion costs. Conversion costs are added proportionately in assembly. The production activity in the assembly department for the current month is presented as follows. Marlan uses the FIFO (first-in, first-out) inventory method in its process cost system.

the begaining of the month 42000  20%

started and finished 10000  

the ending of the month   42000 30%  

The equivalent units transferred from the molding department to the assembly department for the current month are

B. 38,000 units.

C. 40,800 units.

D. 30,000 units.