Domingo Corporation Uses the Weighted-Average Method in Its Process Costing

question 221

Multiple Choice

Domingo Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 1,900 units. The costs and percentage completion of these units in beginning inventory were: A total of 8,300 units were started and 7,600 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?

• A) 10,200
• B) 9,550
• C) 7,600
• D) 1,950

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Definitions:

Fresh Gallon

A measurement indicating a gallon of a freshly produced or provided liquid, such as milk or paint.

Safety Stock

Additional inventory kept to reduce the risk of stockouts.

Service Level

A measurement of the quality and efficiency of a service, often evaluated based on factors such as speed, reliability, and customer satisfaction.

Safety Stock

Extra inventory kept on hand to protect against stockouts caused by variations in supply and demand.