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 500 units. The costs and percentage completion of these units in beginning inventory were: Cost Percent Complete Materials costs $ 5,600 50% Conversion costs $ 1,800 20% A total of 6,900 units were started and 6,200 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 $ 158,800 Conversion costs $ 120,500 The ending inventory was 85% complete with respect to materials and 75% complete with respect to conversion costs. The cost per equivalent unit for materials for the month in the first processing department is closest to

Explanation / Answer

Ending inventory units = 500+6900-6200= 1200 Equivalent unit for materials = 6200+(1200*85%)= 7220 Cost per equivalent unit for materials =(5600+158800)/7220= $22.77

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