Dodd Corporation uses the weighted-average method in its process costing system.
ID: 341212 • Letter: D
Question
Dodd Corporation uses the weighted-average method in its process costing system. This month, the beginning Inventory in the first processing department consisted of 690 units. The costs and percentage completion of these units In beginning Inventory were Cost $7,800 $6,800 Percent Complete Materials costs Conversion costs 80% 25% A total of 8,000 units were started and 7550 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Materials costs Converslon costs $137,800 $323,800 The ending inventory was 75% complete with respect to materials and 70% complete with respect to conversion costs. Note: Your answers may differ from those offered below due to rounding error in all cases select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to ot least three decimal places What are the equivalent units for conversion costs for the month in the first processing department? 0 7.550 Units 8348 Units O 798 Units 8 690 UnitsExplanation / Answer
Equivalent units for conversion costs = 8348 units
Explanation;
First of all let’s calculate, ending inventory units;
Beginning inventory
690 units
+ Units started
8000 units
Total units
8690 units
- Units transferred to second department
(7550) units
Ending inventory
1140 units
Now let’s calculate equivalent units for conversion costs;
Units transferred to second department
7550 units
+ Ending inventory (1140 * 70%)
798 units
Equivalent units for conversion costs
8348 units
Beginning inventory
690 units
+ Units started
8000 units
Total units
8690 units
- Units transferred to second department
(7550) units
Ending inventory
1140 units
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