Domingo Corporation uses the weighted-average method in its process costing syst

Question

Domingo Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 2,000 units. The costs and percentage completion of these units in beginning inventory were Cost $7,100 $3,300 Percent Complete 508 208 Materials costs Conversion costs :47:53 A total of 8,400 units were started and 7700 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Cost Materials costs Conversion costs $160, 300 $122,000 The ending inventory was 85% complete with respect to materials and 75% complete with respect to conversion costs. What are the equivalent units for conversion costs for the month in the first processing department?

Explanation / Answer

Equivalent units in process at the end of period = Beginning inventory + Units started - Units transferred to the second processing department.

= 2,000 + 8,400 - 7,700

= 2,700

Under Weighted average method, Equivalent production = Units that are completed during the period + Equivalent units in process at the end of period

= 7,700 + (2,700 * 75%)

= 9,725

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.