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 1,800 units. The costs and percentage completion of these units in beginning inventory were:

A total of 8,200 units were started and 7,500 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

10,000

9,375

7,500

1,875

Cost Percent
Complete Materials costs $ 6,900 50% Conversion costs $ 3,100 20%

Explanation / Answer

B. 9,375

Conversion Units transferred to the next department 7,500 Ending work in process: Conversion: 2,500 units × 75% 1,875 Equivalent units of production 9,375

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