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Domingo Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory...

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:

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

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:

Cost
Materials costs $ 160,700
Conversion costs $ 122,400

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:

Solutions

Expert Solution

Answer:
Ending inventory
         = Beginning inventory + Units Started (-) Units transferred
         =    ( 2,400 + 8,800 (-) 8,100 ) Units		 3,100 Units
Equivalents units - Materials
             = Units transferred + Units in Ending inventory
             =     8,100 Units + ( 3,100 Units x 85% )
             =     8,100 + 2,635		 10,735 Units
Cost per equivalent unit for materials
             = Total material Costs / Equivalents units
             =   ( $ 7,500 + $ 160,700 ) / 10,735
             =   $ 168,200 / 10,735		 $ 15.67 per Unit

ekkarill92 answered 1 year ago
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