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 2,400 units. The costs and percentage completion of these units in beginning inventory were:

A total of 8,800 units were started and 8,100 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

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?

Multiple Choice

11,200

10,425

8,100

2,325

Cost Percent
Complete Materials costs $ 7,500 50% Conversion costs $ 3,700 20%

Explanation / Answer

B. 10,425

Weighted-average method

Conversion Units transferred to the next department 8,100 Ending work in process: Conversion: 3,100 units × 75% 2,325 Equivalent units of production 10,425

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